NLC posts record profit in FY10; keen to buy coal fields abroad

Central public sector undertaking Neyveli Lignite Corporation (NLC), which today reported its best-ever profit at Rs 1,274.4 crore, said it is on the look out for coal fields in overseas markets to meet its future power generation requirements.

NLC Chairman A R Ansari said today that the company has identified some coal fields in Indonesia for its thermal plant coming up at Tuticorin in joint venture with the Tamil Nadu Electricity Board. It is also on the look out for coal fields in South Africa, which has unexploited, good coal reserves, the chairman added.

Ansari said the company's consolidated net profit rose by a full 52 per cent to Rs 1,247.4 crore for the year ended March 2010, over the same period last year, which is an all time high since its inception 60 years ago.

NLC's total income rose to Rs 4,719.7 crore during the fiscal up from Rs 4,019.8 crore in the previous fiscal, which was also the highest in the history of NLC.

The company board proposed a dividend of Rs 1 per share, Ansari said.

During the year, company also recorded its highest power production of 17,658 million units and has sold 14,827.50 million units, he said.

The chairman further said the company is planning a 2,500-Mw thermal plant in coastal Tamil Nadu between Tuticorin and Chennai. It has also sought Centre's permission to enter ultra mega power plants space, he added.

He also said NLC has signed an MoU with Uttar Pradesh to set up a 2,000 Mw thermal plant.

The first unit of the 125 Mw Barsingar plant at Rajastan would be commissioned next month and the second unit in July, he said. The second thermal station at Neyveli will be commissioned during the current fiscal, Ansari added.