Neyveli Lignite to add 2,000 Mw this fiscal

The company is expecting its capex to be at Rs 2,940 cr for the current fiscal

Tamil Nadu-based public sector power producer Neyveli Lignite Corporation (NLC) said it had firmed up plans to raise its generating capacity to close to 2,000 Mw during 2013-14.

For adding new capacity to the existing 2,740 Mw, the company is expecting its capex to be at Rs 2,940 crore for the current fiscal year, said B Surender Mohan, chairman-cum-managing director, NLC.

Addressing the shareholders, he said the company expects that with its 500 Mw of lignite-based thermal power station (TPS)-II expansion project, 1,000 Mw of Neyveli New Thermal Power Station, which is a replacement of the existing thermal station I of 600 Mw capacity, 1,000 Mw of coal-based power project at Tuticorin, 51 Mw wind power project and 10 Mw solar power project, the total generating capacity would increase to 4,701 Mw from the current 2,740 Mw, a net addition of 1961 Mw.

Besides, it has proposed to consider power projects of 6,495 Mw capacity during the 12/13 Five Year Plan period.

He said that the company was able to realise a part of its dues from Tamil Nadu Generation and Distribution Corporation (Tangedco), the discom of Tamil Nadu government. The amount due from Tangedco is reduced from Rs 3,496.52 crore to Rs 1,921.96 crore as on August 31, 2013.

The total outstanding amount from the state beneficiaries, the state electricity boards (SEBs), as on August 31, was Rs 2,772.05 crore, as against the total outstanding dues of Rs 4,351.83 crore including the surcharge during August 31, 2012. There is a concern on the building up of the surcharge from Tangedco, which is at Rs 600 crore.

The company has invoked the liquidated damages clause in its agreement with Bharat Heavy Electricals Limited (BHEL) for the delay in its project due to BHEL, and has deducted Rs 130-150 crore from BHEL, he added. The company has earlier said the TPS - II expansion project for 2X500 Mw has been delayed because of BHEL.

The circulating fluidised bed combustion-based units could not be commissioned as envisaged and has been delayed by 15 months, now. BHEL, the main plant package contractor has taken up the modification works and has committed to commission the unit-1 in December 2013 while the unit-II is expected to be commissioned in January 2014, he added.

The company has escalated the issues with the Ministry of Coal and other related authorities and now, the responsibility for the works has been shifted to the BHEL Trichy unit, while earlier the company had to approach BHEL Delhi for every requirement. This is expected to expedite the process, said Mohan.

It has also recently placed an order for a value Rs 332.52 crore for setting up a wind power farm of 51 Mw capacity at Kaluneerkulam, Tamil Nadu, which is scheduled to be commissioned in June, 2014.