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NLC eyes Rs 200 cr from raw lignite sales

It will earn Rs 200 crore under this head alone

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BS Reporter Chennai
Last Updated : Jan 24 2013 | 2:10 AM IST

Neyveli Lignite Corporation (NLC) is planning to increase its raw lignite sales to over 1 million tonnes which is almost double that compared to last year. It will earn Rs 200 crore under this head alone.

B Surender Mohan, chairman and managing director, NLC Ltd, said at the Regional Coal Consumers Council (RCCC) and chairman of the third RCCC Meet held in Neyveli.

Ministry of Coal (MoC), Government of India, has constituted a Regional Coal Consumers Council for streamlining the grievance redressal mechanism and to provide solution, attends to complaints and to monitor the proper supply of coalôlignite to its consumers.

The council comprising of B Surender Mohan, NLC CMD as head, R Kandasamy, director (mines, planning and projects) as coordinator and the functional directors as members of the committee. The committee also consists of eight public interest nominees, appointed by Union Ministry of Coal.

The prime objective of the council is to look into the grievances of the consumers, lignite requirement and supply of lignite in a transparent way to the genuine buyers.

After utilisation of lignite for its power plants, NLC has been selling lignite to various industries through e-auction such as cement industries, chemical industries, brick industries, paper industries, steel industries and sugar industries. Moreover, NLC has been selling around 1.9 million tonnes of lignite to a independent power plant at Neyveli annually as per the fuel supply agreement made with them.

During the discussions, members and consumer representatives expressed that though it is a grievances redressal meeting; right now they have no grievances.

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However, they asked for more lignite so that they can go for expansions. The representatives from the cement industry said that they need al teast 130,000 tonnes per month. They expressed their interest to enter into a fuel supply agreement with NLC.

Surender Mohan said, NLC Ltd is planning to increase its raw lignite sales to over 1 million tonnes, which is almost double when compared to last year. This additional quantity would fulfill the requirements of the consumers to certain extent. He also informed that NLC Ltd., is planning to set up an open cast lignite mine at Devankudi, a village near its second mines.

The lignite excavated from this new mine (2 million tonnes) will be supplied to its consumers. He also informed that arrangements will be made for the MoC nominees to visit consumer industries.

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First Published: Sep 06 2012 | 12:23 AM IST

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