Neyveli is a town located about 55 km east of Cuddalore in the South Arcot district of Tamil Nadu. During the construction of irrigation wells occurrence of lignite deposits at shallow depths was noticed in Neyveli area. When systematic geological investigations were taken up in the area, occurrence of lignite over an area of 260 sq.km. With reserves of 2100 million tones discovered.

Neyveli is one of the biggest industrial complexes in the country. Neyveli is the home of Neyveli Lignite Corporation. A large percentage of the thermal electricity generated in Tamil Nadu comes from the power plants in Neyveli.

A number of industries have come up around Chennai which make use of power from Neyveli. Mining lignite at Neyveli has had a very great impact on the development of the area. More than 20,000 workers have been provided with employment.