Commencing the construction work with a 'bhoomi pooja', Nagapattinam District Collector S Palanisamy said IOC was setting up the plant at a cost of Rs 31 crore on 20 acres of land.
IOC has entrusted the construction work to Tata Power Solar Systems Limited, he said.
The Collector said IOC was setting up the project with the objective of generating green energy so as to reduce carbon footprint.
In addition to meeting the power consumption needs of IOC installation here, the power produced from the solar plant will help Muttam and nearby villages of the district, he said.
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