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“Our company isn’t just about lignite mining”

Neyveli Lignite Corporation Limited (NLC), a mini Ratna government company, was established in the year 1956. NLC is a pioneer in the excavation of lignite and generation of power at pithead thermal power stations. Under the leadership of managing director AR Ansari, the company has spread its activities to other states apart from Tamil Nadu, including Orissa, Madhya Pradesh, Jharkhand, Gujarat and Uttar Pradesh.

NLC is planning to venture into environment friendly projects based on resources like water and wind. The Corporation proposed to set-up its first 50 mega watt wind-based power plant at Tuticorin and a 1,000 mega watt hydro power plant at Uttarakhand.

He said, NLC aims to increase its mining capacity from 24 million tonnes per annum (mtpa) to 79.7 mtpa and its power generation from 2,490 mega watt to 10,000 mega watt. He said three projects —TPS-II expansion, Mine-II expansion and Barsingsar, are slated to be com pleted by 2010.

Ansari said the 1,000 mega watt coal-based power plant of NTPL, a joint venture of NLC and the Tamil Nadu Electricity Board at a cost of Rs 4,909 crore, will be commissioned in 2012-13. NLC has achieved an 11 per cent growth rate in lignite production and 25 per cent in power generation for the first quarter, despite many odds. Ansari said, NLC will continue to expand not only in Neyveli, but also in other parts of the country, for which he sought the continued assistance of workers.

The company is targeting to double its power generation capacity to 5,0-00 mega watt by 2012. To achieve this goal, the company has earmarked an investment of Rs 10,000 crore-Rs 12,000 crore this year in capital expenditure.

NLC, which is also keen to diversify into renewable energy and related sectors, will soon scout for coalfields in Africa, especially Mozambique, to strengthen its coal base for the future requirements of its coal-based power stations.

“We have a capacity of about 2,400 mega watt to 2,500 mega watt at present. Our goal is at least to double this capacity to 5,000 mega watt by 2012. Besides tying up for new coal-based projects, we are also keen to move forward on wind, hydro and solar energy segments,” said Ansari.

A bulk of the new capacity will still come from coal-based thermal stations that the company is planning to set-up across a few Indian states. These include a joint venture (JV) with TNEB, a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam for a 2,000MW plant as well as a 50:50 JV with a Coal India subsidiary for a 1,000MW plant.

NLC is keen to move on its own for new power projects in the renewable sector including wind, hydro and solar. “We will start off with 50 mega watt project in wind energy in southern Tamil Nadu, between Tuticorin and Kanyakumari districts, and then increase it to 200 MW,” Ansari said.

Other plans

While NLC is a major player in power generation and with profits soaring year after year, it has never hesitated to revisit the fundamentals. In a highly competitive environment, only players with effective cost control and efficient management come out successful with added strength. Our present generation costs are highly competitive to sustain in the market. This together with sustained growth by our various power projects will ensure a bright future for the company, said Ansari.

Dividend paid

The Neyveli Lignite Corporation paid a dividend of Rs 313.93 crore to the Centre for 2008-2009. CMD AR Ansari handed over the cheque to Union Minister of State for Coal Sriprakash Jaiswal in New Delhi.

The company had paid 20 per cent dividend to the shareholders for the period. The aggregate lignite output for the said period was 21.31 million tonnes and power generation 15,768 million units (MU-gross) and export of power 13,204 MU.
For the period the NLC had registered a sales turnover of Rs 3,354.91 crore and earned profit before tax Rs. 1,046.01 crore and profit after tax Rs. 821.09 crore.

Financial performance

NLC has registered a sales turnover of Rs 3,354.91 crore during the year 2008-09. The profit before tax (PBT) of NLC for the year 2008-09 stands at Rs 1046.01 crore, while the Profit After Tax (PAT) for the same year was Rs 821.09 crore.

NLC's Performance during the first half year of 2009-10

  • Lignite Excavation is 114.76 Lakh Tonnes (LT) as against 102.51 LT during the corresponding period of previous year registering a growth of 12%.

  • Power generation is 9,287 MU as against 7678 MU during the corresponding period of previous year registering a growth of 21%.

  • GOI sanction was received for a Coal Based Power Plant of 1000 MW capacity at Tuticorin, on May 12, 2008 at a cost of Rs 4909.54 crore which is to be implemented by NLC Tamilnadu Power Limited (NTPL) - a Joint Venture Company by NLC and TNEB. This project is scheduled to be commissioned during 2012-13. External Affairs Minister laid foundation stone on 28th February 2009 for this project.

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