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Navratna public sector enterprise Neyveli Lignite Corporation (NLC) would acquire coal mines abroad to fuel its power sector expansion plans in the country.
In this regard, the company has got request for partnership from miners in Asia and Africa.
“Miners in Australia, Indonesia and Mozambique have shown interest to work with us,” said B Surender Mohan, chairman and managing director of NLC.
The company wants to work in a JV with the overseas partners to source coal to India, he added. However, he did not disclose the funds earmarked and the preferred deal size.
Importantly, imported fuel (here coal) would form at least 30 per cent share in its overall fuel requirements. Lignite and coal mined by it and that from domestic suppliers would however cater to it larger needs.
As the lignite is low in calorific value, the company is on the look out for high quality coal for power plants.
Mohan said the company had a cash surplus of around Rs 4,000 crore, which it wants to use for funding its power sector expansion, acquiring new mines (local and international) and raising lignite output.
NLC targets to achieve a four-fold jump in power generation at 11,200-Mw by the end of 13th Five Year Plan from sources including coal, lignite, wind and solar. By the end of fiscal 2014-15, it would add 1,500-Mw capacity to its existing 2,700-Mw, which is mainly lignite-powered.
It plans to raise the lignite output to 38-39 mt from the current 30 mt. It is establishing a 600-Mw coal-fired power unit in Uttar Pradesh for which it had acquired 60 per cent land and was awaiting the Forests and Environment approval for the plant’s coal block there. It was also augmenting the Rajasthan plant capacity.
Speaking at a conclave of public sector vigilance officers here, Mohan said the Rs 29,000-crore NLC capital expenditure would be met 30 per cent from its surplus and the remaining through lending from banks.
When asked whether it was open to acquiring operational power plants in the private sector, he said while the valuations were quite attractive, it has not yet made any plan on them.
