Neyveli Lignite to invest Rs.29,000 crore by 2017

Lignite mining-cum-power generator Neyveli Lignite Corporation Ltd's (NLC) plans to invest around Rs.29,000 crore during the 12th Five Year plan period (2012-2017) towards expansion, a top company official said Tuesday.

"By the end of 12th plan period, we plan to invest around Rs.29,000 crore in expanding our power generation and lignite mining capacities. By the end of 13th plan period, we plan to have a generation capacity of 11,195 MW from the current 2,740 MW," B. Surender Mohan, NLC chairman-cum-managing director, told reporters.

He said the expansion projects would take the company's lignite mining capacity of 38.85 million tonne per annum (MTPA) from the current 30.60 MTPA.

Mohan the funds needed for expansion projects will be met through internal accruals and debt.

Asked about the status of NLC's plans set up two 500 MW power plants in the place of several small units totalling 600 MW, he said retendering work for steam generator package is in progress.

He also said the company has received offers for acquiring coal assets overseas and it would soon decide on an equipment vendor for its 1,000 MW project at Neyveli, around 210 km from here, and another for 50 MW wind power project.

He said power equipment vendors like BHEL, Ansaldo and Lanco have submitted their bids for boilers and offers for supply of turbine from BHEL and Doosan has already been received.

Queried about Lanco group's participation in the boiler tender, Mohan said the group had partnered with a Chinese equipment vendor.

On the company's foray into renewable energy, Mohan said NLC would soon decide on the vendor for its 50 MW wind power project. The company has also decided to put 10 MW solar power project at Neyveli and Rajasthan each.

Mohan said power distribution companies owes NLC a total of Rs.3,457 crore at the end of last fiscal out of which the Tamil Nadu Generation and Distribution Corporation Ltd ranks at the top with a total dues of Rs.2,728 crore.

Speaking about the much delayed 500 MW power project with circulating fluidised bed combustion (CFBC) boiler technology, Mohan said BHEL is working is on the heat exchangers.

He said the first 250 MW unit is expected to go on stream this December and the second unit of similar capacity by January 2014.

The project suffered a delay of over 50 months and based on the performance of the units the company may go ahead with 250 MW CFBC boiler power project at Rajasthan.

He expects the two 125 MW units in Rajasthan with CFBC boiler technology to improve its plant load factor to around 75 percent this year from the current 65 percent.

For the financial year ended 2012-13, NLC posted a turnover of Rs.5,590.07 crore and a net profit of Rs.1,459.75 crore up from Rs.4,866.85 crore and Rs.1,411.33 crore posted the previous year.