Neyveli Lignite Corporation (NLC) has reported a marginal growth in net profit for the year ended March 31, 2011, to Rs 1,298.33 crore as compared to Rs 1,247.46 crore a year ago.
NLC chairman and managing director A R Ansari told reporters: “This year we could report only around five per cent because we have already tapped our potential in 2009-10. Plus, we could not add capacity last year because of BHEL.”
The corporation planned to add a capacity of 1750 MW in the last two-and-a-half years but BHEL could not supply the equipment due to their capacity constraints, he said.
“BHEL is indigenous and they are a monopoly. If there is some serious competition then they (BHEL) can understand how manufacturers should work,” said Ansari.
He said the company had a high-level meeting with BHEL and that things were slightly better now. To avoid BHEL’s monopoly, NLC has lined up three super critical projects in Tamil Nadu and Uttar Pradesh.
The Navaratna company's board has approved a ten-year programme, during which 7,000 MW will be added, taking the total capacity to 10,000 MW from the current 3,000 MW.
The plan would attract an investment of around Rs 45,000 crore, said Ansari. The company will also increase its mining capacity to 70 million tonne (MT) from 30 MT at present.
“Our future projects will be also based on domestic and imported coal,” said Ansari. The company has planned coal-based power plants to the tune of 6,000 MW in Tamil Nadu, Uttar Pradesh and Rajasthan.
To address the resource constraints, NLC is planning to acquire coal mines and lignite overseas. “We have identified Argentina and South Africa,” he said
For 1,000 MW of power, 5 million tonne of coal would be required, while the quantity would be 7 million tonne if it is a lignite-based source.
In talks with tangedco
Neyveli Lignite Corporation (NLC) has held talks with the Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco), a subsidiary of Tamil Nadu Electricity Board (TNEB), on a potential partnership for transmission of power produced at its units across the state. NLC said it could invest up to Rs 600 crore in the partnership.
NLC’s chairman and managing director A R Ansari said, “One of the major challenges is evacuation of power produced at various plants in the state. The TNEB has the capability but doesn't have the resources,” he said.
“TNEB asked us to become a partner in transmission. I may commit to be a partner and can invest Rs 500-600 crore,” said Ansari. The company has a production capacity of 3000 MW, mainly in TN.
