 "NLC Ltd to add 6,820 Mw of power at cost of Rs 27,740 crore")
Navaratna company NLC Ltd, which comes under the Ministry of Coal, is planning to add over 6,821 megawatt (Mw) of power, with an investment of over Rs 27,740 crore in these projects.
NLC Ltd, earlier known as Neyveli Lignite Corporation, is presently operating four thermal power stations at Neyveli, Tamil Nadu, and one thermal power station at Barsingsar, Rajasthan, with a total installed capacity of 3,240 Mw. During the year, two units of TPS-II Expansion (2x250 Mw) achieved commercial operation.
Projects for addition of around 6,821 Mw from thermal, wind and solar energy are either under construction or in the formulation stage. Work for coal-based power plants with cumulative power generation of 1,500 Mw, which will be part of this proposed addition, is expected to be ready by end of 2019.
These include two plants – of 500 Mw each – at Neyveli, which would be ready by October 2017 and April 2018, respectively. Further, the projects also include a 500 Mw plant in Rajasthan, which would be ready by December 2019.
NLC also said that for the Rs 14,482 crore Sirkali Thermal Power Project (3,960 Mw in two phases of 1,980 Mw each) in Sirkali, Tamil Nadu, the power purchase agreement (PPA) has been signed and it is awaiting Tamil Nadu government's nod for land acquisition. Fuel for the project will be met from Talabira-II & III coal blocks.
The company has plans to set up a 1,000 Mw thermal power plant as a second expansion to the existing TPS-II at Neyveli.
Inorganic growth
As part of its plans to acquire power assets of about 3,000 Mw by 2025, NLC entered into a memorandum of understanding with Damodar Valley Corporation (DVC) for acquisition of 2x600 Mw Raghunathpur Thermal Power Station set up by DVC in West Bengal, through a joint-venture company to be formed with an equity participation of DVC and NLC in the ratio of 26 per cent and 74 per cent, respectively.
Already, PPAs have been entered into with various discoms of Haryana, Punjab and Kerala and long-term access is available for supply of power aggregating to 450 Mw. Further, action is being taken for supply of 600 Mw of power to Uttar Pradesh, subject to the approval of Ministry of Power.
SBI Capital Markets Ltd (SBI Caps) was jointly appointed by DVC and NLC to carry out necessary due diligence studies and also to advice both the parties on the acquisition process. SBI Caps has arrived at Rs 7,547 crore as the project cost. The company has also forwarded proposal to Ministry of Coal for sanction.
Renewable energy focus
NLC forayed into renewable energy by setting up a wind power plant in Tirunelveli and solar power plant at Neyveli, Tamil Nadu.
During 2015-16, a 10 Mw solar power plant was commissioned at Neyveli and eight more wind turbine generators (WTGs), of 1.5 Mw each, were commissioned, totalling to 17 WTGs.
NLC is now gearing up to install 260 Mw worth of solar power projects at Neyveli and Rajasthan at an estimated cost of Rs 830.45 crore each.
While the Ministry of New and Renewable Energy (MNRE) has accorded in-principle approval for grant of viability gap funding (VGF) for the Neyveli project, VGF is not available for the Rajasthan Project, so far. NLC has requested MNRE for VGF coverage for the Rajasthan project also.
NLC is also looking at other parts of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana, Rajasthan, Puducherry and Andaman & Nicobar Islands to set up more solar plants.
SBI Caps was engaged for preparation of economic viability report for establishing these projects and action has been initiated with various state governments towards acquisition of land and also for signing PPAs for the proposed projects.
It has proposed a grid-connected 50 Mw solar power project with pumped hydro storage system and battery backup in Andaman & Nicobar Islands and MNRE has agreed to provide 40 per cent of the project cost – as discovered through a competitive bidding process – as grant.
