Neyveli Lignite plans to acquire coal blocks in Mozambique, Indonesia and Australia

Company to add around over 6, 000 MW of power, which would attract over Rs 45,500 cr

Neyveli Lignite Corporation (NLC) planning to acquire coal blocks in Mozambique, Indonesia and Australia. The company has said that it would require around 10 million tonnes of imported coal, besides the coal allocation in India.

Speaking to Business Standard NLC's Chairman and Managing Director B Surender Mohan said that the company is looking at mines which got capacity of about 200-250 million tonnes per annum.

"We are looking at mines which can supply coals for long time, say minimum of 20 years," said Mohan, adding that the company is open for other join venture and acquiring mines. The company will appoint one agency which would take care of these deposits. In the next six months will finalise and will acquire or form a JV, said Mohan.

Addressing the shareholders earlier, he said that for the 1,000 MW thermal power plant of NTPL under implementation the company's proposed 4,000 MW Thermal Power Project at Sirkali, Tamil Nadu, the company would require two million tonnes of coal initially. He added, this could increase to 10 million tonnes at a later period of time.

The company earlier issued a notification seeking Expression of Interest for acquiring coal blocks abroad.

"Offers have been received for coal block in Mozambique, Indonesia and Australia," said Mohan, who added that action is being taken for technical, financial and legal due diligence studies.

Besides, coal blocks of Pachwara South and Jilga-Barpali are also expected to be commissioned at the end XII/XIII Plan periods, said Mohan.

Speaking about company's proposed new power projects, he said the present installed capacity of the company is 2,740 mega watt and the company plans to increase it to 4,701 MW.

The new capacity addition will be done through a 500 MW lignite based TPS-II Expansion Project, 1,000 MW Neyveli New Thermal Power Station, which is the replacement of existing TPS-I of 600 MW capacity, at Neyveli, Tamil Nadu.

NLC, through a joint venture, is also setting and 1,000 MW coal based power project at Tuticorin and setting up a 51 MW wind power project at Kazhuneerkulam, Tamil Nadu, 10 MW solar power project at Neyveli.

Besides, the above project the company is proposed to consider implementing power projects, through subsidiary company, of 6505 MW capacity during XII/XIII Plan periods.

He noted, at the current rate to set up one MW power plant it would cost about Rs 7-7.4 crore. Going by the calculation, the company is expected to invest around Rs 45,500 crore.

Speaking about the lignite mining capacity expansion, Mohan said, the capacity is proposed to be increased to 36.25 million tonne per annum (MTPA) from 30.60 MTPA by end of the same period.

State Electricity Boards' dues to NLC comes down drastically

Neyveli Lignite Corporation (NLC's) Chairman and Managing Director B Surender Mohan said that dues from Tamil Nadu Generation and Distribution Corporation (TANGEDCO) which stood at Rs 1,331.22 crore as on March 2014 has been brought down to Rs 530.32 crore on as on August 31, 2014.

He said, the total outstanding amount of Rs 2,206.53 crore as on March 31, 2014 from the SEBs has been brought down to Rs 1,403.14 crore as on August 31, 2014.