Neyveli Lignite's plant in Rajasthan cleared

The Union government has approved Neyveli Lignite Corporation's lignite-mine-cum-power project in Barsingsar in the Bikaner district of Rajasthan.

The Rs 1,368-crore project includes setting up two units of 125 Mw each and a mine with a capacity of 210 tonnes per annum. The power project of 250 Mw is expected to ease the power crisis in the desert state.

The project has been hanging fire for more than 18 years. In 1987, the state government approached NLC to establish the project and a memorandum of understanding (MoU) was signed among the Union government, the state government and NLC in November 1987, for developing a lignite mine for producing 1.7 million tonnes annually. A 240 Mw (2x120) lignite-based power plant also was proposed then.

The Union government approved the Barsingsar lignite-mine-cum-power project in April 1991. NLC at that time had taken over the project for implementation, but later it abandoned it owing to financial reasons and lack of time as it already had projects worth crores of rupees on hand.

And the lignite power project was not a "high priority" for the company. In October 1996, state offered the project to Hindustan Development Corporation. The private agency failed to ensure even financial closure.

With improved financial position, NLC again approached the state government a couple of years back expressing willingness to take back the project.

The development activities in western Rajasthan are expected to be accelerated with the setting up of a lignite-based thermal power project.

It will also pave the way for exploitation of vast lignite reserves in Bamer, Bikaner and Nagaur districts, which have potential for setting up of lignite based power project of about 2500 MW.

Exploitation of vast untapped lignite resource would enable the state to become self sufficient in its requirement and this would accelerate economic growth of the state.

The state, which is facing acute power crisis would now be able to tap its own resources for producing power using lignite.The state has rich deposit of lignite in Barmer, Nagaur and in Bikaner district Lignite as the base material for power generation is being for the first time in the state.

The state government-owned Rajasthan Vidyut Utpadan Nigam is setting up a 125 MW power project based on lignite at Giral in Barmer district. It proposes to set up another unit of 125 MW for which the lignite would be provided by Rajasthan State Mineral Development Corporation (RSMDC).