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Narendra Modi gestures as he addresses a gathering during a conference of start-up businesses in New Delhi. Representational Image].Reuters file

A super thermal power project of the National Thermal Power Corporation (NTPC) is coming up in Telangana at an estimated initial investment of Rs 10,600 crore.

Prime Minister Narendra Modi on Sunday laid the foundation stone for the project.

The NTPC project would come up in two phases. The first phase will see a power project of 1,600 MW, while the second phase would be a thermal power project of 2,400 MW, Press Trust of India reported. The project is currently being built on the land which lies within the premises of NTPC's existing Ramagundam station.

Last year, the Coal ministry had allotted the Mandakini-B coal mine in Odisha to NTPC for the 4,000 MW Telangana super thermal power project. As per an interim arrangement, until the development of the mine, a tapering of coal linkage for the second phase would be provided by the Western Coalfields Limited.

According to the Reorganisation Act of Andhra Pradesh 2014, the NTPC will establish the 4,000 MW power facility for the new State of Telangana.

In June, NTPC had said it was planning to raise about Rs. 20,000 crore in the present financial year. Of the total amount, Rs. 14,000 crore would be raised from the domestic market and the remaining Rs. 6,000 crore would come from foreign bond market. The company plans to expand its operations to production of fertilisers, which is a regulated industry.