Power purchase agreements have been signed; NLC scouting for coal sources

The Neyveli Lignite Corporation, a Navaratna company, has proposed to start new power projects to generate additional 8,500 MW of electricity.

Of this, over 70 per cent – 6,000 MW – would come from the projects in Tamil Nadu, B. Surender Mohan, Chairman-cum-Managing Director of the NLC, said on Saturday, inaugurating the rejuvenated mines equipment here.

Mr. Mohan said the new projects in the pipeline in Tamil Nadu were the Tuticorin project – 1,000 MW, Neyveli New Thermal Power Station – 1,000 MW and the Sirkazhi ultra mega power project – 4,000 MW.

For the Sirkazhi project, the NLC has applied for allocation of coal blocks.

Power purchase agreements for all the projects have been signed. The NLC has already started scouting for coal sources in the international market to supplement supply from indigenous sources.

Expression ofinterest invited

The Chairman further said the NLC had invited expression of interest.

By the end of the year, the NLC would enhance its power generation capacity by another 1,000 MW, increasing the generation from the present 2,740 MW to 3,740 MW.

The additional generation capacity would come from the first unit (250 MW) of the Thermal Power Station-II Expansion by July 2013 and the second unit of the same capacity by September 2013.

Joint venture

The first unit (500 MW) of the joint venture project namely the “NLC Tamil Nadu Power Ltd,” at Tuticorin was expected to be commissioned in December 2013 and the second unit of the same capacity by March 2014.

Jayamkondam power project

As for the Jayamkondam power project, the Chairman said it had to surmount two issues: lignite reserves are available in the thickly populated areas and source of water to meet the requirements of the project is inadequate.

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