It is the second major boiler blast in NLC India. In May, four persons were killed when a boiler in the TPS II exploded.
The company's TPS II consists of seven units of 210 MW each.
The cause of the boiler blast is yet to be ascertained.
Tamil Nadu Chief Minister K. Palaniswami expressed grief over the deaths and announced a compensation of Rs 300,000 each to the bereaved families.
Palaniswami also announced Rs 100,000 each to severely injured workers and Rs 50,000 each to other injured.
Union Home Minister Amit Shah, meanwhile, talked to CM Palaniswami and assured him of all possible help.
The Home Minister took stock of the situation of the incident in a telephonic conversation with Palaniswami.
"Anguished to learn about the loss of lives due to a blast at Neyveli power plant boiler in Tamil Nadu. Have spoken to @CMOTamilNadu and assured all possible help," Shah tweeted.
The Home Minister further said that Centre's paramilitary wing Central Industrial Security Force (CISF) is already on the spot to assist the relief work.
"Praying for the earliest recovery of those injured."
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