The Neyveli Lignite Corporation (NLC) is set to instal a 500 MW power project in the Jayamkondam region of Tamil Nadu, if the State government allots NLC some vacant land for the plant. The public sector power major is also set to see two projects amounting to 1,250 MW of generation to go on stream next month.
According to chairman and managing director B Surender Mohan, the State government has told the company that it is possible to allot land in the region to NLC for the project. “The State government has told us that some vacant land is in possession of Tamil Nadu Industrial Development Corporation (TIDCO), which can be given to NLC. The idea is TIDCO to have a small stake in the project,” he said.
While the allocation of the land for the Jayamkondan project is still in the works, NLC will be going on stream with 1,250 MW worth of projects next month. The 2×500 MW coal based plant, a joint venture with the Tamil Nadu Generation and Distribution Corporation (Tamil Nadu General and Distribution Corporation an electrical power generation and distribution public sector undertaking that is owned by the Government of Tamil Nadu. It was formed on 1 November 2010 under section 131 of the Electricity Act of 2003,...) will begin commercial operations next month, while another 250 MW plant in Neyveli will be operationalised during the same period. “Trial generation for the first unit of the Tamil Nadu General and Distribution Corporation an electrical power generation and distribution public sector undertaking that is owned by the Government of Tamil Nadu. It was formed on 1 November 2010 under section 131 of the Electricity Act of 2003,... plant has already begun,” Mohan said.
NLC also has several other projects lined up for this fiscal — the company will be spending around Rs 4,200 crore towards capital expenditure this fiscal. “NLC has decided to invest Rs 2,700 crore to set up a lignite mine in Bithnok in Rajasthan and a 2×125 MW power project,” he said adding that also being planned are a 2×125 MW power station at Barsingsar and a lignite mine in Hadla at an outlay of Rs 2,628 crore. Other projects being planned are a 3×660 MW power plant in UP and a power plant in Ramanathapuram district on lignite gasification technology.
NLC also posted a 5 per cent rise in a net profit for the last financial year, registering Rs 1,579.68 crore, up from Rs 1,501.88 crore posted in the previous fiscal. Turnover rose from Rs 6,087.68 crore to Rs 5,967.23 crore.