The engineering, procurement and construction (EPC) contract includes the addition of four 660MW generators for a total capacity of 2640MW.
The first phase of the project entails two generators each of capacity 600MW.
IL&FS plans to sell the power generated from the plant to state-run distribution companies on a long-term basis and also in the open market.
IL&FS is developing a 3,600MW imported coal based thermal power project in Tamil Nadu, which is being carried out in two phases.
The company has also acquired a coal mine in Indonesia to support the projects.