NLC India’s Lignite Production Down 4% Y-o-Y in FY19

NLC India Ltd has reported a decline of 4% in annual lignite production during FY19, thereby marking its lowest total in the past 8 fiscals.

The company envisaged as the largest lignite producer in the country had attained 242.49 LT (Lakh Tonne) of lignite in FY19 compared with 251.53 LT in FY18.

NLC presently operates three open cast lignite Mines at Neyveli in the State of Tamil Nadu and one opencast lignite Mine at Barsingsar in the State of Rajasthan, accumulating a combined capacity of 30.6 MnT per annum.

The company had recorded an appreciable growth in output from its Mine-I A located at Nevyeli, wherein lignite production increased 9% Y-o-Y to 29.97 LT in FY19. Output from the other three mines had fell down during the year.

Source: NLC
Quantity in Lakh Tonne

Bulk of the lignite produced at NLC’s mines is inherently used to run its thermal power plants (four located at Nevyeli and one in Barsingsar); however, the company also sells a part of the output in open market via e-auctions.

NLC’s lignite sale had noted a remarkable increase of 91% on the year to 30.9 LT in FY19 compared with 16.16 LT in FY18.

The company highlighted that it had achieved its highest ever consolidated consolidated capex of INR 7208.16 Crore and standalone capex of INR 3670.01 Crore.

NLC intends to begin mining from Talabira II and III coal blocks by FY20, while it was also informed that expansion of Mine I & I-A lignite mines was scheduled to complete by 2020-21. However, the company stated that its Bithnok and Halda lignite projects in Rajasthan were presently put on hold.

Power Generation:
During the year, total power generation of 20676.18 MU and sales of 17505.30 MU power was achieved in spite of power surrender of 1891.47 MU witnessed from State DISCOMs.

A break-up of power generation from NLC’s existing capacities indicates that output from solar power surged drastically to 471.14 MU in FY19 against 70.52 MU in FY18.

Notably, solar power projects to the tune of 403.56 MW were commissioned during the year, taking the overall capacity in the renewable energy sector to 794.56 MW.

NLC has entered a Memorandum of Understanding (MoU) with Ministry of Coal (MoC), targeting 24,500 MU power generation during FY20. Besides, in a major achievement, NLC has secured power trading license (Category I) from CERC, which would enable it to trade electricity in open market.