Neyveli Lignite Corporation will start two investment projects with a total investment of Rs 5,328 crore, including to set up Bithnok Lignite Mine (2.25 million tonne of Lignite) cum Thermal Power Project.
The company has received board approval for investment in establishing Barsingsar Thermal Power Station Extension (BTPSE- 2X125 Mw) and Lignite Mine at Hadla (1.9 Million Tonnes of Lignite) at a cost of Rs 2628 crore.
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NLC Board in its 448th meeting held on March 23, 2015 has approved the investment decision to set up Bithnok Lignite Mine cum Thermal Power Project at a cost of Rs 2,700 crore and to establish Barsingsar Thermal Power Station Extension and lignite mine at Hadla at a cost of Rs 2,628 crore.
The company is expected to have a capital expenditure of Rs 4,200 crore during the current fiscal year. When asked about whether the central government would dilute its stake in the company, he said that there is time to do it.
The company is expected to start a project, a 2x500 Mw coal based plant, under a joint venture with the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and a 250 Mw plant in Neyveli by next month, said Surender Mohan, chairman-cum-managing director of NLC. It is also looking at setting up a power generation facility on lignite gasification facility in Ramanathapuram district of Tamil Nadu. The company is also planning to set up a 500 MW power project in Jayamkondan, in the State, if the land is available.
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Besides, as part of adding more revenue through value added products, it is looking at setting up of a pig iron plant with Australian technology to mix lignite with iron ore for this. It is also continuing the process for a potential acquisition of a coal mine in overseas.
Due to the difficulties faced in taking up the above coal blocks, NLC has requested MOC, Government of India to consider allotment of Mahanadhi and Machchakatta Coal blocks to cater the coal requirement of NLC Tamilnadu Power Limited TPS (NTPL TPS - 2x500 Mw), Ghatampur Thermal Power Plant (1980 MW) and Sirkali Thermal Power Plant (4,000 Mw).