NLC gets nod to set up facility at Tuticorin port

The shipping ministry has given its nod to Neyveli Lignite Corporation (NLC) for setting up a captive coal handling facility at Tuticorin port.

The facility, which comprises a Rs 50 crore berth, would be constructed at a cost of around Rs 250 crore, Tuticorin Port Trust chairman GJ Rao told Business Standard.

It would handle imported thermal coal for the Rs 4,900 crore power plant being set up by NLC within the port premises. The 2x500 Mw power plant is being set up along with the Tamil Nadu Electricity Board (TNEB).

Rao said the facility would handle around five million tonnes of thermal coal from 2012 while the total capacity of the berth would be 6.3 million tonnes. “If the corporation would commit for more coal traffic, we may think of giving incentives to them, subject to the Tariff Authority for Major Ports,” said Rao.

Initially, NLC would bring Handymax vessels with a capacity of 40,000 tonnes. Once the dredging is over, it would bring Panamax vessels with a capacity of 60,000 tonnes.

The Tuticorin Port Trust is planning to invest around Rs 538 crore to increase draft at main berths, entry channels and turning circles from 10.7 metre to 12.8 metre. It has called for tenders for the proposed dredging works and seven companies participated in the pre-bid meeting.

The two berths currently handle imported coal for TNEB and other private players.

It is handling around 7.5 million tonnes of coal every year and this is expected to increase to 12.5-13 million tonnes by 2012 when NLC’s facility goes on stream, according to Rao.