Neyveli Lignite plans to add 8,455 MW capacity in 10 years

MD says NLC plants generating power at higher rates due to employee costs

Neyveli Lignite Corporation (NLC) plans to increase its production capacity to 11,195 MW from the current 2,740 MW over the next 10 years.

B Surender Mohan, chairman and managing director, NLC said that over the next 10 years, NLC's production capacity will be increased to 11,195 MW - consisting of 4,140 MW (lignite based capacity), 6,980 MW (coal based) and 70 MW in wind and solar. Lignite production capacity of 30.6 million tonne will be increased to 38.85 MT.

According to Mohan, owing to the increased overhead expenditure, NLC could not meet the stringent O&M norms fixed by CERC. He said that NLC's power plants are generating power at 26% higher cost than the O&M cost prescribed by CERC, i.e. Rs 6.47 lakh a MW more than the CERC norms, mainly on account of high employee cost.

“It is imperative NLC's growth be commensurate with expenditure. We should have strict cost control measures to curtail the avoidable overhead expenditure to the maximum possible extent," he said.

New projects

Both units of TPS-II Expansion - the 2X250 MW and 2X500 MW - shall commence commercial operation in this fiscal (Unit-I by February 2014 and Unit-2 in March 2014).

Meanwhile, Unit I and Units II of NLC's joint venture project - NTPL - are expected to be commissioned in February 2014 and May 2014 respectively. Fuel supply agreement for this plant has been signed with Mahanadi Coal Fields of Coal India.

For the 2x500 MW Neyveli New Thermal Power Plant (NNTPP), Mohan said, the contract for two packages has already been awarded and tender finalisation for the remaining package is in advanced state. Unit-I is expected to be commissioned in August 2017 and Unit-2 in February 2018.

As for the 3x660 MW project in Uttar Pradesh, the tender is in progress for major packages. But more than 50% of the land required for the power project has been acquired.

For the 4,000 MW Sirkali Thermal Power Project in Tamil Nadu, NLC is awaiting the Tamil Nadu Government's in-principle approval for allocation of land. The coal for the same will be sourced from the Jilga-Barpalli Coal Block of Chattisgarh State.

The 1X250 MW Bithonok Thermal Power project has regained momentum, said Mohan, on getting recommendation of Expert Appraisal Committee (EAC) MoEF for consideration of environment clearance. Another 250 MW Barsingar expansion project with the linked mines is also in the anvil, with an alternate source in place of one of the proposed mine at Palana, which have been dropped due to land acquisition reasons.

As part of diversification into renewable energy, earlier NLC announced that it is planning to set up a 10 MW solar plant at Neyevli, for which it has called for tenders. It is now planning to set up another 10 MW in Barsingsar, Rajasthan.

On fuel linkage to NNTPP, NLC Board has already approved 'Resturcturing of Mine I & Mine IA' at capital outlay of Rs 1,458 crore, with a project schedule of 26 months from April 30, 2013, to commence lignite production by mid 2015.