NLC India (NLCIL) rose 2.74% to Rs 71.15 after the company said that it is making efforts to ramp coal output from its Talabira mine in Odisha to up to 10 million tonnes per annum (MTPA) this year.
The company aims to increase the coal production of the Talabira mine to up to 20 MTPA from next year onwards.
In an exchange filing made after market hours yesterday, NLC India said that it taken steps to achieve the target of 6 MTPA from its original schedule of 4 MTPA during the current year. The Talabira II & III Open Cast Mine, Odisha, has crossed 2 million tonnes production till date during its first full year of operation.
The increased coal production will not only provide fuel security to end use plants but also make available coal in the market, it added.
The coal produced is being transported to its one of the end use plant, NLC Tamil Nadu Power's 2 x 500 MW plant at Tuticorin, Tamil Nadu, a subsidiary of NLCIL. The entire generated power is catering to the requirement of Southern states and major share (more than 40%) goes to Tamil Nadu.
Recent Amendment to Mines and Minerals (Development and Regulation) Act on Mineral Concession Rules by Ministry of Coal, Govt. of India on 1st October 2021 has enabled the Mine for sale of excess Coal after meeting the coal requirement of End Use Plant.
Accordingly, the permission from Ministry of Coal has been sought to sell the excess coal, the company said.
NLC India, a Navratna public sector undertaking (PSU), operates lignite mines and thermal power stations in Neyveli, Tamil Nadu, and Barsingsar, Rajasthan. It sells power to the state utilities of Tamil Nadu, Rajasthan, Andhra Pradesh, Kerala, Karnataka, and the Union Territory of Puducherry. The company has four lignite mines and one coal block with combined mining capacity of 50.6 mtpa, and seven thermal power stations with combined generation capacity of 4,640 MW.
The company's consolidated net profit rose 2.89% to Rs 347.69 crore on a 12.50% increase in net sales to Rs to Rs 3,036.46 crore in Q1 FY22 over Q1 FY21.
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