Neyveli Lignite Corporation is entering into an memorandum of Understanding (MoU) with the Gujarat government towards establishing an integrated lignite mine of 8 million tonnes per annum, through a joint venture set up for the purpose according to an official release issued by Nevyeli to the BSE today.The mine is linked to a power project of 1000 MW in South Gujarat in first phase to be enhanced to 1500 MW in the second phase with linked mine capacity of 12 million tonnes per annum at a cost of Rs 7500 crore.The central government's coal ministry has already accorded approval for the implementation of this project. The company will have 74-89% shareholding in the JV company formed and the balance will be held by Gujarat Government or companies nominated by Government of Gujarat to implement the above project. The project finance will be carried out with Debt:Equity ratio of 70:30.The project will be implemented within five years from the day of signing a Memorandum of Understanding starting from the preparation of Feasibility Report, sanction of GOI and commissioning of units.Upon commissioning of the project, power generated from this project shall be made available-by the JVC to the State of Gujarat and other states in the Western Region as per the allocation.At present the company is operating lignite mines of 24 million tonnes per annum and power projects of 2490 MW at Neyveli. Further, the company plansto take up number of new/expansion projects in Tamil Nadu (Tuticorin & Jayamkondam), Rajasthan, Orissa and Madhya Pradesh to the tune of 6000 MW.In addition, the Company is presently implementing Mine-cum-Power projects in Neyveli and Rajasthan to the tune of 750 MW at the estimated cost of Rs 5560 crore apart from operating units.
