NLC India Ltd Lignite Production has increased in May’17 despite missing its monthly target.
Nevyeli Lignite Ltd is a Navratna company inferred by the Government of India. The company is involved in lignite production at its four open cast mines namely Mine-I, Mine I-A, Mine-II and Barsingsar mine.
NLC Ltd’s Lignite production had shown remarkable growth over the month, as it increased 128% to 8.81 MnT in May’17. The company had produced 3.86 MnT Lignite during Apr’17, according to the data provided by the Ministry of Coal.
Despite the significant performance during the month, NLC failed to achieve its production target of 11.55 MnT for May’17. Moreover, Lignite production fell by 38% Y-o-Y compared with 14.12 MnT in May’16.
NLC removed 179.05 Lakh Cubic Metre (LM3) of overburden for the extraction of lignite during May’17, which was higher by 12% compared with 160.08 LM3 removed during Mar’16. Overburden removal also increased 2% M-o-M compared with 175.74 LM3 in Apr’17.
Power Generation:
Power Generation from pit head power stations stood 1405.75 MU during May’17, down by 18% M-o-M compared with 1706.15 MU in Apr’17.
The company had set power generation target of 1755.5 MU for May’17.
Tender Information for Sales of Raw Lignite:
Apart from supplying Lignite to its linked pit head power stations, NLC also sell raw lignite to small scale industries to use it as fuel in their production activities.
Recently, NLC Ltd has floated a tender for the sale of Raw Lignite, Silica Sand and all Clay through E-Auction. The E-Auction will be conducted by MSMT on as-is-where-is and no complaint basis.
| Product | E-Auction Date | User/Buyer | Quantity | Location |
| Raw Lignite | 04.07.2017 | Bulk Actual Users/buyers | 500000 | Mine I-A |
| Small actual users/Buyers | 50000 | |||
| Silica Sand | 11.07.2017 | All Actual Users/Buyers | 30000 | Mine-I |
| 10000 | Mine-II | |||
| Ball Clay | 11.07.2017 | All Actual Users/Buyers | 20000 | Mine-I |
Quantity in MT
Material Specification (Lignite):
Approximate properties of raw lignite are provided below.
Physical Property:
| Colour | Brown to Dark Brown |
| Bulk Density | 0.85-0.95 gram/cc |
| Size at Bunker | Fine to 30 cm( Normal Lump form) |
Proximate Analysis of Raw Lignite:
| Constituents | Quality Range |
| Moisture | 46-56% |
| Ash | 3-12% |
| Volatile Matter | 21-26% |
| Fixed Carbon | 17-22.5% |
| Calorific Value | 2460-2970 kCal/kg |
| Sulphur | 0.5-1.2% |
Latest Price Structure:
NLC Ltd has provided latest price structure of Raw Lignite on Ex-Mines basis,(Mine I-A), NLCIL, Nevyeli.
| Details | Value |
| Basic Cost of Material | 1700 |
| Royalty @ 6% on Basic Cost | 102 |
| DMFT @ 30% on Royalty | 30.6 |
| NMET @ 2% on Royalty | 2.04 |
| Service Tax | 20.2 |
| Excise Duty | 37.1 |
| Clean Environment Cess | 400 |
| VAT/CST | 114.6 |
| Total | 2406.54 |
Value in INR/MT
The company has also specified that the loading and transportation arrangements are to be made by the buyer at their own cost.
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