Tamil Nadu Electricity board (TNEB) was contemplating expansion of their existing Tuticorin Thermal Power Plant by addition of one number of 500 MW unit as stage IV of the existing power station. Accordingly CEA has included this addition in the 14th power survey as a possible addition to meet the power demand in the southern region.
With the liberalised schemes formulated by the Government of India for setting up power plants, Tamil Nadu Petro Products Limited (TPL) as a part of their corporate growth, has decided to diversify in the field of power generation. In response to the invitation of TNEB for setting up this project, TPL had submitted a proposal to setup a 1x500 MW coal fired power station at Tuticorin in Tuticorin District in Tamil Nadu, which was accepted by government of Tamil Nadu. Subsequently TPL has signed a memorandum of understanding (Mou) with TNEB and TPL promoted a new company SPIC Electric Power Corporation (Private) Limited (SEPC) for implementation of the 1X525 MW Tuticorin Thermal Power.

The project is implemented as an Independent Power Project (IPP) of TANGEDCO (formerly TNEB). This imported coal-based plant (1.44 million MT/year). The project is located within VO Chidambaranar Port Trust (formerly Tuticorin Port Trust) complex near check post 1.

The Project consists of one coal fired steam generator connected to a reheat type steam turbine generator along with all the required auxiliaries. Induced Draft Cooling Tower (IDCT) for closed loop cooling water system for condenser with dedicated Desalination Plant for preparation of raw water for the entire use of the plant.

The entire Power is evacuated by the Tamil Nadu Transmission Corporation Limited through 400 KV lines through GIS. The exported power as per the terms of the PPA from the plant will be 525 MW.