DCM Shriram Consolidated (DSCL) today said that it will spend Rs 80 crore in two years to develop a lignite mine in Rajasthan, so it could replace coal as the fuel at its Kota power plant.
"We will invest Rs 80 crore in the mine over a period of two years for the use of lignite as fuel for our power plant at Kota," DSCL Chairman and Sr Managing Director Ajay Shriram told PTI.
The diversified firm, which has interests in sugar, bioseed, fertiliser and chloro-vinyl, requires one million tonnes of coal a year to fuel its 130-MW power plant. It also purchases a certain amount of lignite to fire the plant.
"The mine reserves are under assessment. However, according to preliminary estimates, it should suffice for at least 10-15 years of the company's requirement," Shriram said.
"Lignite from the mines will replace the purchased lignite and part of the coal, which is being used currently in the Kota Power plant," Shriram said, adding that the mine is expected to become operational by 2012-13.
As lignite has low-energy density, it is not traded extensively in the world market. It is mostly used in power stations located very close to the mines.
The use of lignite would help DSCL reduce costs in running the power plant.
