Neyveli is in South Arcot district. It is a place where Lignite are taken from the ground. In earlier days the ground was dug for creating wells for irrigation. That time lignite was noticed. Henceforth lignite is being taken here. Lignite is a brown coal which has low carbon content and more moisture content when compared to coal. Normally lignite beds occur at the depths of 55 to 76 metres. The method with which mining is done is by open cast method. The whole process of Lignite mining is mechanized. To take the coal, first the layer of rocks which is above the coal should be removed. There will be excess of water above the layer of coal which should be pumped out and they are removed by using pump sets. This water can be used by the town people for drinking and washing purposes and also it is used for the generation of the power. The lignite factory has great impact in the life of the people in Neyveli. Many people in Neyveli are employed due to this project. Many industries are developing here and have gained its electricity from Neyveli. There is also a Urea factory located in Neyveli.