NLC India Limited has floated a tender to venture into the lignite-to-methanol business as part of its diversification plans by utilising available lignite resources. The company is a central public sector enterprise whose primary operation involves lignite mining and thermal power generation.
The proposed project involves setting up of a methanol plant through lignite gasification at Neyveli in Tamil Nadu on LEPCC (Licencing, Engineering, Procurement, Construction and Commissioning) mode. The plant capacity has been fixed at 1,200 MTPD (metric tonne per day).
This would be executed via two LEPCs and two EPC tenders comprising LEPC-1 (gasification block), LEPC-2 (methanol synthesis block), EPC-1 (steam generation block) and EPC-2 (utility and offsite).
The current tender enquiry has been made specifically for the LEPC-1 part wherein the work order involves lignite handling and pre-drying, along with construction of gasification and air separation unit.
The company has also short-listed two pre-qualified licensors for providing technical assistance given the lack of experience regarding gasification projects in the country.
Bid criteria
Bid evaluation for the selection of eligible bidder would be carried out through a single stage two-part bidding process comprising techno-commercial and pricing rounds. The last date of bid submission is 20 January, 2023.
Besides, the bidders are required to tie up with any one of the pre-qualified licensors in order to arrange process license and basic design package for the gasification process and subsequently supply raw syngas of suitable composition while operating at intended capacity.
In view of the capital-intensive work involved in setting up the gasification project, the successful bidder would be permitted a timeline of 46 months (42 months for mechanical completion plus four months for pre-commissioning and commissioning) upon issuance of letter of acceptance.
The project execution is a welcome step taken in line with the government’s target of attaining coal gasification of 100 million tonnes by 2030.
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