Neyveli shortlists 18 proposals for overseas coal assets

The company seeks to acquire 2-3 assets for supply of 2-10 million tonne of coal in a year to secure long- term fuel linkages to its upcoming power projects

State-owned Neyveli Lignite has shortlisted 18 odd proposals -- out of 89 it has received from companies in various nations such as Indonesia, Australia, Mozambique and the US -- for buying coal assets overseas.
     
The company is looking to acquire 2-3 assets for supply of 2-10 million tonne (MT) of coal in a year to secure long- term fuel linkages to its upcoming power projects.
     
"We have shortlisted about 20 per cent of the 89 proposals for acquiring assets as well as long-term coal linkages, which we received from Indonesia, Mozambique, Australia, Columbia, US and Canada. We have sought details from the companies," a top Neyveli Lignite official told PTI.

     

The 89 proposals are under five different categories, including joint ventures, he said.
     
Most of the 20 per cent proposals shortlisted are from Indonesia and many companies have offered multiple proposals, the official added.
     
"Once we complete the due-diligence by the end of next month, we will be in a position to acquire at least two to three assets to secure 2-10 million tonnes of fuel linkages for our power project," he said.
    
The Tamil Nadu-based lignite miner 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.
    
It has also planned to set up another new power plant in Rajasthan with a capacity of 250 MW as an extension of the existing power plant at an investment of Rs 2041.78 crore.
     
The company has plans to take its installed power generation capacity to 4,240 MW by the end of the current fiscal. It has an installed capacity of 2,740 MW at present.

    
The 'Navratna' firm operates four mines with a total capacity of 30.6 MTPA, and four thermal power stations with a total capacity of 2,740 MW.
     
The Centre last month had sold over 5.97 crore shares, or 3.56 per cent stake, in NLC through an institutional placement programme (IPP) at price band of Rs 58-60 a share.