State-owned lignite mining & power generating company NLC India Ltd on Thursday unveiled its plans to set up solar power plants in various places of Tamil Nadu at a cost of Rs 2,170 crore with 500 MW capacity.

In a filing to the Bombay Stock Exchange, the company said, “NLC India forays into renewable energy.”

The move has come after the company buoyed by the success of the 10 MW pilot solar power plant.

The company is going to establish, 500 MW solar power plant at various places of Tamilnadu, for this it has floated tenders and obtained quotations from different firms, subject to a minimum formation capacity of 50 MW, it said in a statement.

The power thus generated would be given to Tamilnadu Power Generation & Distribution Corporation (TANGEDCO), for which, necessary Power Purchase Agreement (PPA) has already been signed, it said.

The company further said that, it is expected to generate 83 crore unit of power p.a., by taking into consideration of 19 per cent of capacity utilization factor (CUF) on an average.

Moreover, the power would be generated within 13 months, from the date of work order, given, it added.

Meanwhile, shares of the company closed at Rs 96.50 apiece, down 0.21 per cent, from previous close on BSE.