Neyveli Lignite scales new heights

Neyveli Lignite Corporation Limited, a “Navratna” Public Sector Enterprise, under the administrative control of Ministry of Coal (MOC) has a chequered history of achievements in the last 56 years since its inception in 1956. NLC is a pioneer among the public sector undertakings in Mine cum Energy sector.

During the year 2011-12, the company has scaled new heights in its physical performance ever since its inception in the areas of Lignite Mining and Power generation. All the products registered a growth over the performance of previous year. Lignite production registered a growth of 6.25 % and Power Generation registered a growth of 5.08 % during the year.

Sales turnover for the year 2011-12 stands at Rs4,866.85 crore as against Rs4,295.95 crore in the previous year 2010-11 registering a growth of 13.29 % and is highest in any year since inception.

Profit before tax stands at Rs1,983.89 crore for the year 2011-12, as compared to Rs1,684.55 crore in the previous year 2010-11[17.8% higher] and it is the highest for any year since inception.

Profit after tax stands at Rs. 1411.33 crore for the year 2011-12, as compared to Rs. 1298.33 crore in the previous year 2010-11 registering a growth of 8.7 % and it is the highest for any year since inception.

The Board of Directors of NLC has recommended a dividend of 28 % (Rs. 2.80 per share) and the total outflow including distribution tax will be Rs. 545.97 Crore for the year 2011-12.

All the products exceeded the target. Lignite production registered a growth of 3.07 % Power Generation registered a growth of 9.36 % and export of power by 10.73 % during the period April to July 2012.

NLC had a commendable financial performance during the first three months in line with its production performance. The Net sales for the period April to June 2012 stands at Rs 1331.81 Crores which is 9.93 % higher as compared to performance n the same period of the previous year 2011-12. The Profit before tax stands at Rs 408.02 Crores for the period April to June 2012.

Two projects viz., Thermal Power Station-II Expansion (2x250 MW) at Neyveli and Coal based power project (2 X 500 MW) at Thoothukudi (A joint venture of NLC & Tamil Nadu Generation & Distribution Corporation Ltd.,[TANGEDCO]) are under implementation by NLC . M/s BHEL is the main plant package contractor for both the projects.

With regard to Thermal Power Station-II Expansion, Unit – I was synchronized in June 2011. However the Unit could not be commissioned due to initial teething problems and rectifications works. Erection works are in progress in respect of Unit-II. To curtail the delays and for the early commissioning of the projects, NLC is taking lot of efforts.

Based on the request of CMD/NLC, to stop the further delay, BP Rao, CMD, BHEL visited Neyveli on 1st August 2012 along with a team of officials and reviewed the status of the project for expediting the erection activities. Unit – I is expected to be commissioned in October 2012 and Unit – II by March 2013.

In respect of the Coal based power project (2 X 500 MW) at Thoothukudi, supply and erection activities are in progress. Both the units are expected to be commissioned in 2013-14.

By completing the above projects, NLC’s power generation Capacity will be raised from 2740 MW to 4240 MW.

In addition to the above, tendering activities are in progress with respect to the following projects:

NLC’s New Thermal Power Project at Neyveli (2 X 500 MW) in lieu of TPS- I 10 MW Solar PV power project at Neyveli. 50 MW Wind farm.

NLC is 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 substantial growth in the years to come.

Fund requirement of the above projects will be met from internal accruals and borrowings.

On 12.04.2012, the Cabinet Committee on Infrastructure (CCI), had approved the formation of a Joint Venture Company NLC-UPRVUNL Power Limited to setup a Coal based power project (1980 MW) at Ghatampur, Uttar Pradesh. Foundation stone laying ceremony was held on 11.06.2012 at Ghatampur.

At the end of twelfth plan NLC expects to achieve a lignite mining capacity of 38.85 MTPA compared to the present capacity of 30.60 MTPA.. After 10 years, NLC will have a total generating capacity of about 11,500 MW against the present capacity of 2,740 MW.

NLC with its Navratna status forges ahead in all fronts and with its expansion activities and with continuous, consistent support and co-operation from working force, is poised to spread its service in the entire nation and its fame all around the world.