Nevyeli set to up power capacity to 4,240 this fiscal:Official

State-run Neyveli Lignite plans to take its installed power generation capacity to 4,240 MW by the end of the current fiscal, on the back of ongoing power projects.

The Tamil Nadu-based lignite miner has an installed capacity of 2,740 MW at present.

"With the implementation of 1,000 MW power project at Tuticorin and 500 MW of TPS-II expansion by the current year, the company shall have installed capacity of 4,240 MW," a top official of the Neyveli Lignite said.

The TPS-II expansion project, being implemented at a cost of about Rs 2,030 crore is likely to be operationalised by March 2014, the official added.

The Centre had earlier approved implementation of coal based 2x500 MW Thermal Power Project at Tuticorin at an estimated cost of Rs 4,910 crore.

To meet the coal requirement, the company is also examining proposals from from Indonesia, Australia, Mozambique, the US and a few other countries offering coal assets and long-term fuel supplies among other things for its upcoming power projects.

The company is likely to take a final call on these by November.

The company is looking to acquire two to three assets abroad for supply of 2-10 million tonnes (MT) of coal in a year.

It had earlier this year floated 'Expression of Interest' (EOI) for acquiring assets abroad for long-term coal supplies for the upcoming power plants and also for acquiring stakes in mining firms.

NLC has plans for growth in power generation capacity and is expanding its activities not only at Neyveli, but also in other parts of the country. Its fuel needs are likely to shoot up to 10 MTPA once all these projects are commissioned.

It is already in the process of setting up two power projects in Tamil Nadu and Uttar Pradesh at an estimated cost of Rs 24,770 crore, to take its capacity to 11,195 MW.

In Tamil Nadu, it has plans to set up a 4,000 MW coal- based power plant near Thirumullaivasal village of Sirkali taluk, Nagapattinam district. In Uttar Pradesh, it will set up a 1,980 MW (3X660 MW) plant in Ghatampur in Kanpur Nagar district at an estimated cost of Rs 14,375.4 crore.

Besides, in Rajasthan, the company "has proposed setting up a thermal power plant of 250 MW capacity... At an aggregate estimated cost of Rs 2,298.83 crore," it had said last week.

Also, it has planned to set up another new power plant in Rajasthan with a capacity of 250 MW as an extension of the existing power plant there at an investment of Rs 2041.78 crore.

The 'Navratna' firm operates four mines with a total capacity 30.6 MTPA, and four thermal power stations of total capacity of 2,740 MW.

The Centre last month had sold over 5.97 crore shares, or 3.56% stake, in NLC through an institutional placement programme (IPP) at a price band of Rs 58-60 a share.