Neyveli Lignite misses Q2 capex target of Rs 1,106 cr

However, the company hopes to achieve the annual target of Rs 2,490 cr

State-owned Nevyeli Lignite Corporation has spent just about Rs 795.93 crore on capex during the July-September quarter, as against the target of Rs 1,106.57 crore.

Despite lower capital expenditure incurred during the second quarter of 2013-14 fiscal, the company hopes to achieve the annual target of Rs 2,490.14 crore, according to an official document.

Last fiscal, it had spent Rs 1,827.91 crore on capex, as against the target of Rs 1,687 crore. NLC's capex target for the 2014-15 is Rs 3,837.95 crore.

The government said recently that NLC plans to expand a number of its ongoing projects which include mines at Neyveli and Barsingsar (Rajashtan) and power plant at Tuticorin (Tamil Nadu) during the 12th plan period (2012-17).

NLC will invest Rs 29,239 crore in coal and power sectors by 2017, an official statement had said earlier.

"Out of this, it will invest Rs 26,728.40 crore for development of power projects and Rs 2,510.70 crore for coal projects," it said.

NLC also plans to set up wind farm with an investment of Rs 364.75 crore and Solar Power Project with the cost of Rs 13,319 crore, it had stated.

NLC is already working on the development of Underground Coal Gasification (UCG) Projects and one such project in Raneri, Rajasthan, will be taken up through a suitable developer through competitive bidding.

UCG projects in Rajasthan and Gujarat will be implemented through joint venture with ONGC.