Mine-III project hanging fire

Neyveli Lignite Corporation is yet to make the technological breakthrough needed to make the implementation of its Mine-III project feasible.

The corporation, which has been largely been operating with German technology, is now looking at `alternate mining technology' from American companies, with the Chennai US Consulate offering to help in the search.

With a higher overburden, the viability of the proposed eight million tonne mine, which will support a 2000 mw power plant, is still at stake, S Jayaraman, chairman and managing director, told media persons here on Saturday.

While the future of this project hangs in balance, NLC has offered to take on the proposed private sector lignite-based 1000 mw power project at Jayamkondam. Interestingly, that project too faced some technological problems on the same lines raising feasibility issues in terms of costs.

The project has already changed hands before and finally came unstuck with the Tamil Nadu Electricity Board (TNEB) unable to offer the escrow cover the Reliance-led consortium demanded. The approval of the NLC board for taking up the project is awaited before a formal acceptance can be sent by the corporation to TNEB.

Meanwhile, NLC is all set to take up two coal-based mega projects. This includes a joint venture with TNEB for a 1000 mw power plant at Tuticorin, involving an investment of Rs 4,000 crore.

NLC, which has 89 per cent stake in the project is considering offering some portion of it to the Tuticorin Port Trust, which will play a crucial role in the shipping of coal from the Talcher mines in Orissa.

The plant will serve Tamil Nadu with 750 mw, Kerala with 150 mw and Karnataka with 100 mw.

The other project is a 2000 mw plant in the Ib Valley of Orissa with an investment of Rs 8000 crore. The ministry of coal gave its `in-principal' approvals for these two projects in June 2003. The mega project status granted to these projects will make capital equipment imports for them possible at zero duty.

NLC's Rajasthan Mine for 2.1 million tonne of lignite and 2x125 mw power plants with an investment of Rs 1,347.76 crore has got all the statutory nods, including that from the ministry of environment and forests. It is now awaiting the PIB's clearance.