Navaratna company Neyveli Lignite Corporation (NLC) is lining up investments to the tune of Rs 24,000 crore for setting up power plants across the country in the next four years.
“As a public sector unit, we have to invest 30 per cent equity, and pool the rest through borrowings. The proposed capex is for setting up power projects to generate up to 4,000 Mw of power over the next three to four years,” NLC chairman and managing director AR Ansari said.
The mining-cum-power producer, which already has reserves to the extent of Rs 6,000 crore, will float back its profits of between Rs 1,000 crore and Rs 1,500 crore every year, he added.
All these years, NLC is using lignite as a source for power generation. The company’s power stations in Neyveli, Tamil Nadu, where it is based, are lignite-based.
NLC’s first unit of TPS-I was commissioned in 1962, and the life of a thermal power station is about 25 years. TPS-I has completed 42 years of service. Some units have completed even 45 years and are going strong. “We will build a new plant instead of TPS, which will be replaced in phases between 2014 and 2019,” Ansari said.