NLC to move forward to buy foreign assets to secure its future power projects fuel requirement.
Neyveli Lignite Corporation (NLC), state-owned coal producer in Tamil Nadu, has received various proposals (around 89) from companies in various nations such as Indonesia, Australia, Mozambique and the US for acquiring coal assets in abroad.
Neyveli has shortlisted 18 out of 89 received proposals. Earlier NLC has floated Expression of Interest (EOI) for acquiring assets abroad for long-term coal supplies for the upcoming power plants and also for acquiring stakes in mining firms. NLC is moving forward to acquire coal assets in abroad to secure long- term fuel linkages to its upcoming power projects and will import around 2-10 MnT annually.
Most of the shortlisted proposals are from Indonesia and as official commented to media “Once we complete the due-diligence by the end of next month, company will be in a position to acquire at least two to three assets to secure 2-10 MnT of fuel linkages for power project.
NLC is projecting to grow its power generation capacity. They are expanding and spreading its activities in other parts of the country apart from Neyveli. It is expected that its coal demand will be increased to 10 MnT pa after commissioning of all projects.
To Major Power Projects
| State | Capacity | Estimated Project Cost | Remarks |
|---|---|---|---|
| Uttar Pradesh (Dist: Kanpur Nagar) | 1,980 MW (3X660 MW) | Rs 14,375.4 crore | In Process of set up |
| Tamil Nadu (Dist: Nagapattinam) | 4,000 MW | Rs 24,770 crore | In Process of Set up |
| Rajasthan | 250 MW | Rs 2,298.83 crore | Under Planning |
| Rajasthan (Extension in current unit) | 250 MW | Rs 2041.78 crore | Under Planning |
In Current financial year NLC is planning to increase it power generation capacity to 4,240 MW, whereas currently it has 2,740 MW installed capacity.
NLC is one of the Navratna Company which is operating with 4 coal mines with total capacity of 30.6 MTPA, and 4 thermal power stations with a total capacity of 2,740 MW.
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