In December 2010, NLC announced that in association with the Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL), it will set up 2,000 MW coal-based thermal power plant at Ghatampur Teshil, Kanpur, Uttar Pradesh, with an equity participation of 51 per cent by NLC and 49 per cent by UPRVUNL. This will entail an estimated investment of Rs. 10,000 crore. The UP government has given in-principle approval for allotment of 2,500 acres and also 80 cusecs of water for the project. Necessary application has been made to the Ministry of Coal for getting long-term coal linkages for this project. Also under formulation is a 2,000 MW coastal coal-based power plant at Sirkali, Tamil Nadu.

Besides, the company is also diversifying towards renewable energy (green energy) by agreeing to set up 50 MW wind power and 25 MW solar projects.
Two new power plants in the pipeline are Neyveli and the Bithnok lignite mining cum power project. The company has proposed to set up a power plant at Neyveli with a capacity of 2 x 500 MW due to the ageing of TPS-I. The Cabinet Committee on Economic Affairs (CCEA) approved the project on May, 19, 2011, and formal orders from the Government of India are awaited. NLC has initiated action for obtaining mega power project status and avail certain concessional duties. The estimated cost of the power project is Rs. 5,000 crore.

A thermal power plant of 250 MW capacity with a linked mine of 2.25 MTPA is proposed to be set-up at Bithnok in Bikaner District, Rajasthan. The estimated cost of the project is Rs. 1,700 crore. The Ministry of Coal has approved the advance action proposal and feasibility studies are on.

The project proposal submitted to the Government of India at a Public Investment Board (PIB) meeting is awaited.

Under implementation are two projects that will enable the company to take its power generating capacity from 2,740 MW to 4,240 MW. These are 500 MW TPS-II Expansion project. Unit-I of TPS-II Expansion was synchronised on May 18, 2011. The first 250 MW unit is expected to be commissioned in June 2011 and the second unit in March 2012. Another is a 1,000 MW coal based power project at Thoothukudi (a JV between NLC and Tamil Nadu Electricity Board). Both the units are expected to be commissioned in 2012-13.