Tamil Nadu is the major beneficiary of power generated from this facility (about 750 MW), while some of it is supplied to Andhra Pradesh, Karnataka, Kerala, and Puducherry.

The foundation stone for the Vallur thermal plant was laid on 5 September 2007, with an estimated cost of ₹80 billion (€100 million),[5] and the ₹19,900-million main plant package to supply steam generators and turbine for stage I was awarded to Bharat Heavy Electricals Limited (BHEL), a state-run power equipments manufacturer, on 13 August 2007.

Initially expected to be operational by 2010, the project was delayed due to the late implementation of the coal-handling facility established by the BHEL.

Unit I was commissioned in March 2012 but operating at full capacity was delayed further due to problems with coal-handling facilities.

The Rural Electrification Corporation (REC) sanctioned ₹38 billion ($809 million) to meet the entire debt portion of the project.

The boiler systems at the plant consists of single- or two-pass type, with front/rear/side mill layout, which can have single/bi-drum arrangement with natural or controlled circulation.

[4] The IDCTs use seawater, which is drawn from the intake channel of North Chennai Thermal Power Station, and fresh water requirement is met from a desalination plant.

The plant has adopted closed cycle re-circulating type cooling water system for its operations.