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NLC net up 51.9% at Rs 1247 cr in FY10

With the company having reserves over Rs 5000 crore, it can hope to take up capex programme of Rs 12,000 to Rs 15,000 crore. The mini ratna PSU is poised for a rapid growth in the mining and power generation

Public sector, Neyveli Lignite Corporation has reported a 51.9 per cent jump in net profit at Rs 1247.46 crore for the year ending March 31, 2010 against Rs 821.09 crore in the previous year. Turnover increased by 22.8 per cent to Rs 4,121.03 crore (Rs 3354.91 crore).

The board, which met in Chennai, declared a final dividend of 10 per cent. Along with the interim dividend of 10 per cent paid in April, the total outflow will be Rs 335.54 crore.

NLC Chairman and managing director, AR Ansari told media, “The 60 year old corporation had put up the best ever performance since inception in terms of various parameters like lignite mining, power generation, turnover and profits. This year, it wants to increase lignite mining by 8 per cent and power generation by 6.20 per cent.”

With NLC having reserves over Rs 5000 crore, it can hope to take up capex programme of Rs 12,000 to Rs 15,000 crore. The mini ratna PSU is poised for a rapid growth in the mining and power generation in TN and other part of the country.

It has embarked on a big expansion to increase mining capacity to 79.85 MTPA (both lignite and coal) from the current 30.6 MTPA and power generation capacity to 13,790 mw (current 2,490 mw) by 12th plan end. It already has board approval to implement projects for raising capacity to 4,290 mw. This included a 50 mw wind power project near Coimbatore.

Ansari said for the proposed Tuticorin thermal power project, it wants to meet 30 per cent of coal needs through imports. This will call for importing 1.2 million tonnes. For this, it has started the legal due diligence for acquiring coal mining properties in Indonesia. It also plans to acquire such mines in South Africa.

NLC is awaiting approval from the Centre to set-up an ultra mega power project at Cheyyar in Tamil Nadu. It is also keen to promote a 2,000 mw plant along the coastal line between Tuticorin and Chennai. This will require acquiring nearly 2,000 acres of land.

This year, it hopes to commission by June, the first unit of 125 mw in Rajasthan followed by the second unit of similar capacity. Referring to the delay in TPS-II expansion project ( 2x250 mw), he said it was mainly due to the failure of BHEL to supply the equipment for which NLC cannot initiate any action against another PSU.

However, Ansari said with BHEL expected to deliver the equipment by June, it hopes to commission the first unit of 250 mw by this year end.

Adverting to the contract labour problem, he said it has been paying the highest salary in the country to its 10,000 contract workers. This year, it wants to absorb atleast 4,000 of them through the industrial co-operative society. Since NLC already has a surplus force of 3,000, it cannot take all the contract workers on its rolls. They will be absorbed depending on vacancies arising every year.

Asked how the corporation intends to comply with Finance Ministry’s new guideline for listed companies to have a public holding of 25% ( 20% now), especially in view of the opposition to NLC’s fresh disinvestment programme, he said, “We will abide whatever guideline issued by the Government.”

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