THE Centre on Thursday approved the setting up of two coal-based thermal power project units at Tuticorin that will add 1,000 MW to the southern grid. Briefing reporters after the Cabinet meeting chaired by the Prime Minister, Union I&B Minister Priyaranjan Dasmunshi said the Cabinet approved the setting up of 2X500 MW coal-based thermal power project at Tuticorin, to be executed by the Neyveli Lignite Corporation (NLC) in joint venture with the Tamil Nadu Electricity Board (TNEB). Dasmunshi said both power plants would be set up at an estimated cost of Rs 4,909.54 crore at April, 2007 price level with interest during construction amounting to Rs 597.33 crore. It would also involve foreign exchange component of Rs 716.06 crore. He said the Cabinet also approved the formation of a JV between NLC and TNEB (to be called NLC-Tamil Nadu Power Ltd). NLC will hold 89 per cent of the equity capital. "The power from Tuticorin Power Project will cater to the demand of the southern states," Dasmunshi said. The Centre has set an ambitious target of adding 78,000 MW power during the 11th Plan with over 21,000 MW in the first two years.