Two power projects totalling 1,250 MW capacity promoted by integrated lignite mining and power generation company Neyveli Lignite Corporation Ltd (NLC) will go on stream next month, said a top company official.
The company will be spending around Rs.4,200 crore towards capital expenditure this fiscal.
"The 2x500 MW coal based plant in joint venture with TANGEDCO (Tamil Nadu Generation and Distribution Corporation) is expected to start commercial operation next month. Trial generation has begun in the first unit," chairman and managing director B.Surender Mohan told reporters here on Friday.
According to him, another 250 MW power project set up by it in Neyveli in Tamil Nadu will also go on stream next month.
Already, a similar unit started commercial generation in April 2015.
Mohan said NLC has decided to invest Rs.2,700 crore to set up a lignite mine in Bithnok in Rajasthan and a 2x125 MW power project.
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The company has also decided to set up 2x125 MW power station at Barsingsar and a lignite mine in Hadla - both also in Rajasthan - at an outlay of Rs.2,628 crore.
In Uttar Pradesh, the company has decided to build a 3x660 MW power plant and necessary land for the project has been acquired.
In its home state, NLC is planning to set up a power plant in Ramanathapuram district on lignite gasification technology.
Similarly in Jayamkondan area in Tamil Nadu, NLC will set up a 500 MW power project if the state government can give vacant land.
"The state government says that vacant land is in possession of TIDCO (Tamil Nadu Industrial Development Corporation) which can be given to NLC. The idea is TIDCO to have a small stake in the project," Mohan said.
He said the company is also looking at the possibility of setting up a pilot sized pig iron project at Neyveli to increase revenue from valued added products.
"We found the technology in Australia to mix lignite with iron ore and make the pig iron. We will set up a pilot project in Neyveli," Mohan said.
Queried about the company's plans of acquiring a coal mine overseas, he said the process is still on.
Asked about the company tapping the market so as to bring down the central government's stake, Mohan said there is time for the company to do that.
NLC closed last fiscal with a net profit of Rs.1,579.68 crore up from Rs.1,501.88 crore posted during 2013-14.
Last fiscal, the company posted a turnover of Rs.6,087.68 crore up from Rs.5,967.23 crore.