The Cabinet Committee on Infrastructure today approved the proposal of state-run Neyveli Lignite Corporation Ltd (NLC) to set up a 1,000 MW lignite-based new thermal power project in Cuddalore district. The project would attract an investment of over Rs 5,900 crore.
The project consists of two units of 500 MW each at an estimated cost of Rs 5,907.11 crore, on October 2010 price level with the interest during construction (IDC) of Rs 559.03 crore and foreign exchange component of Rs 969.81 crore equivalent to $ 217.009 million.
The power generated from Neyveli new thermal power project of 2x500 MW will cater to the demand of the states in the southern region.
NLC expects to double its present mining capacity and increase its power generation capacity by threefold with completion of its projects under progress and pipeline, according to a company announcement.
The company, by implementing two projects under execution, expects its power generating capacity to be raised from 2740 MW to 4240 MW by fiscal year 2012-13. A 500 MW thermal power station expansion project is expected to complete in two phases, first 250 MW unit to be commissioned in June 2011 and the second unit in March 2012, the company said.
Its joint venture coal-based power project of 1000 MW at Thoothukudi with Tamil Nadu Electricity Board, is under construction stage and the two units in the venture would be commissioned in 2012-13.
Further, it is expecting approval from the central government for a 2x500 MW thermal power project and approval from Public Investment Board (PIB) for Bithnok lignite mine cum power project of 2.25 tonne per annum (TPA) and 250 MW respectively.
It also has projects including a 2000 MW coal-based power plant in Uttar Pradesh as a JV with UPRVUNL, a 2000 MW coal-based power plant at Orissa, a 2000 MW coastal coal-based power plant at Sirkali in Tamil Nadu using imported coal, a 13.5 MTPA lignite mine cum power project at Jayamkondam which also would generate 1000 MW power and a 50 MW wind power plant, under formulation.
The total lignite mining capacity through these projects is 13.5 MTPA and power generation capacity of 7050 MW, the company said.
“NLC is also spreading its wings in new projects with fuels other than lignite. NLC forges ahead in all fronts and with its expansion activities the company is poised for substandial growth in the years to come,” it said.
