NLC India Ltd, an enterprise of Indian government and the largest lignite producer in the country, has been granted the final approval under the Forest (Conservation) Act, for developing its open cast coal mining project in Talabira.
It is pertinent to note that NLC, Mahanadi Coalfields Ltd (MCL) and Hindalco had jointly formed a JV named MNH Shakti Ltd with equity proportion of 70:15:15, to implement 20.0 MTPA Coal Mining project in Talabira, in the state of Odisha.
The Talabira II & III coal block was allocated to the JV company for the purpose.
However, pursuant to judgement of Honorable Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014, allotment of the coal block to the JV company was cancelled.
The JV Company proposed for winding up with necessary formalities being carried out. Since then, the Talabira coal Blocks have since been allotted solely to NLC.
In order to develop and operate the coal blocks, NLC has appointed Talabira (Odisha) Mining Private Limited as the Mine Developer Operator (MDO).
As per the agreement entered into with the MDO, the coal production from the above mines is expected to be commenced from the year 2019-20.
NLC’s Lignite Production Down 4% Y-o-Y in FY19:
NLC India Ltd, has recorded a fall in annual lignite production for the second straight year during FY19.
As per the data provided by Coal Ministry, NLC’s lignite production fell to 242.49 LT (Lakh Tonne) in FY19 compared with 251.53 LT in FY18. The company had also missed its annual production target of 246.90 LT.
Lignite, often referred to as brown coal, is considered the lowest rank of coal due to its relatively low heat content.
The total Overburden (OB) removal of 1709.04 Lakh Cubic Metre (LM3) was well above the set target of 1445 LM3 for FY19, but had decreased 8% Y-o-Y from 1851.35 LM3 in FY18.
The lignite mined out by NLC is used as fuel in its linked pit head power stations, and a part of it is sold to small scale industries.
In terms of its power business, NLC had managed net power generation of 20673.52 MU in FY19, slightly lower on the year from 20740.84 MU in FY18.
Major portion of the power output was procured from the thermal power stations, accounting to 20088.49 MU in FY19. Output from Wind and Solar plants was 113.89 MU and 471.14 MU respectively.
Sales of power were noted at 17502.78 MU in FY19, which was slightly up on the year from 17418.83 in FY18.
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