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Neyveli Lignite slips 1.5% despite large investment plans

Company announced plans to invest around Rs 29,000 cr to set up power projects

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SI Reporter Mumbai
Last Updated : May 30 2013 | 10:03 AM IST
Neyveli Lignite has started the day in the red with losses of 1.5% at Rs 66.65 despite the company's announcement that it plans to invest around Rs 29,000 crore to set up power projects with a capacity of around 8,450 Mw.

These projects are expected to go on stream by the end of 13th Five Year Plan (2017-22). The PSU firm plans to acquire coal assets in the order of 10 million tonne outside India, for which it had already received 25 offers. The firm maintained that internal accruals and borrowings would fund the  proposed investments.

The company had proposed a coal-based power project with a capacity of 1,980 Mw in Uttar Pradesh in partnership with Uttar Pradesh Power Ltd, with NLC holding an equity stake of 59 per cent, while the remaining would be held by its partner. Besides, it is planning to set up a 4,000-Mw plant in Tamil Nadu.

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It plans to raise its lignite capacity from the present 30.60 mtpa to 38.85 mtpa by developing projects including the Devangudi mine project (2 mtpa), Bithnok Mine (2.25 mtpa), Hadla and Palana mine project in Rajasthan (2.50 Mtpa).

The stock dipped to a low of Rs 66.40 after opening at Rs 67. It is now trading just 4% away from its 52-week low of Rs 64.25. Around 673 shares have been traded on the BSE so far, as against a two week average of 32,129 shares.

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First Published: May 30 2013 | 9:50 AM IST

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