Neyveli Lignite Corporation jumps after Cabinet approval for its power project

Neyveli Lignite Corporation jumped 7.18% to Rs 79.10 at 10:55 IST on BSE after Cabinet approved company's proposal for installation of a coal based thermal power project at Ghatampur in Uttar Pradesh.

The announcement was made after market hours yesterday, 20 July 2016.

Meanwhile, the BSE Sensex was down 33.73 points, or 0.12%, to 27,882.16.

High volume was witnessed on the counter. On BSE, so far 1.63 lakh shares were traded in the counter, compared with an average volume of 26,923 shares in the past one quarter. The stock hit a high of Rs 80.90 and a low of Rs 77 so far during the day. The stock hit a 52-week high of Rs 94.25 on 7 August 2015. The stock hit a 52-week low of Rs 60.35 on 1 March 2016. The stock had underperformed the market over the past one month till 20 July 2016, advancing 3.29% compared with Sensex's 3.9% rise. The scrip had also underperformed the market in past one quarter, gaining 3.87% as against Sensex's 8.02% rise.

The large-cap company has an equity capital of Rs 1677.71 crore. Face value per share is Rs 10.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval for installation of Ghatampur Thermal Power Project (GTPC) of 1980 megawatts (MW) (3X660 MW) capacity through a joint venture company named Neyveli Uttar Pradesh Power (NUPPL) formed jointly by Neyveli Lignite Corporation (NLC) and Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL).

The project will be implemented at an estimated cost of Rs 17237.80 crore including interest during construction component of Rs 3202.42 crore. The commissioning of Unit I, II and III of the project will be in 52 months, 58 months and 64 months respectively from starting date. The benefits of this generation will be available in the XIII Five Year Plan. The energy generated by the GTPS of about 14000 MU/annum will mainly be supplied to Uttar Pradesh.

Ministry of Coal had allotted Pachwara South coal block in Jharkhand state for meeting the coal requirement of the GTPS.

Neyveli Lignite Corporation's net profit declined 34.1% to Rs 446.24 crore on 10.2% rise in net sales to Rs 1854.15 crore in Q4 March 2016 over Q4 March 2015.

Neyveli Lignite Corporation (NLC) operates lignite mines, pithead thermal power stations and also has operations in renewable energy sector. As per the shareholding pattern as on 30 June 2016, the Government of India held 90% stake in the company.

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