The plant will be set up at an investment of Rs 19,422 crore at Talabira in Odisha, the Ministry of Coal said in a statement on Wednesday.
"NLC has planned a 3x800 MW thermal plant in Odisha. This is a pithead thermal plant near Talabira coal mines of NLC with a project cost of Rs 19,422 crore," it said.
On the status of the project, the ministry said the land acquisition and other related clearances are at an advanced stage.
It is expected that work on the project will commence by the end of this year and will be completed by 2028-29, according to the statement.
The plant will supply 1,450 MW of power to Tamil Nadu, 100 MW to Puducherry and 400 MW to Kerala, the ministry said.
Tamil Nadu-based NLC, under the Ministry of Coal, operates three opencast lignite mines with a total installed capacity of 30 million tonnes per annum (MTPA) at Neyveli.
Besides, it has an opencast lignite mine at Barsingsar in Rajasthan with an installed capacity of 2.1 MTPA and an opencast coal mine at Talabira in Odisha with an installed capacity of 20 MTPA.