The Union Power Ministry has revised the power allocation from NLC India's (NLCIL) Thermal Power Station-II second expansion project to Tamil Nadu, following a request from the public sector power utility.

According to the Ministry's communication, NLC requested this reallocation due to a revision in the project configuration from 2x660 MW (1320 MW Super-Critical) to 2x500 MW (1000 MW Sub-critical), citing constraints in lignite-based Super Critical technology availability. The Ministry has now allocated 830.44 MW (83.044%) of the installed capacity to Tamil Nadu and 19.56 MW to Puducherry, while 150 MW remains unallocated. The unallocated portion will be added to the Southern Region power pool after commercial operations begin, and distributed according to existing guidelines.

This reallocation is subject to the power purchase agreements (PPAs) between NLCIL and state power utilities, ensuring financial and commercial compliance. As of April 1, 2025, Tamil Nadu’s grid includes 6,953 MW from Central Generating Stations. The state meets its power demand through its thermal capacity, shares from Central Stations, Long Term Open Access (LTOA), and Medium Term Open Access (MTOA).