Neyveli Lignite Corporation (NLC) is likely to jon hands with government-owned Coal India Ltd (CIL) to bid for captive coal mines abroad. The company is likely to float a special purpose vehicle (SPV) which will have equal equity participation from both the PSUs. The feedstock from the captive mines would help NLC to fire its plans to make a foray into coal-fed power projects.
NLC chairman and managing director AR Ansari had said recently that ?…as the company is contemplating to enter into coal-based power projects, it has become necessary to plan for acquiring coal blocks for development and extraction of coal.? NLC is actively pursuing plans with CIL for acquisition or development of coal assets abroad.
Besides, it also has plans to develop domestic coal blocks allotted to state government or the private sector under public-private-partnership route. According to officials, NLC, in association with CIL, would scout for coal sources in Indonesia to begin with. The company is planning to ship coal from such mines to fire its proposed power plants back home.
NLC, is currently implementing two projects the mine-II expansion (10.5 mtpa to 15 mtpa) linked to thermal power station-II expansion (1,470 mw to 1,970 mw) at Neyveli and mine (2.1 mtpa) and power project of 250 mw at Barsingsar in Rajasthan. Besides, it has several joint venture projects including the coal based thermal power plant at Tuticorin (2X 250 mw), Bithnok thermal power project (250 mw) with linked mine (2.25 mtpa) and Jayamkondam lignite-based mine (13.5 tpa) and thermal power project (2X800 mw).
The total mining capacity of NLC, after taking into account all the envisaged lignite mining and power projects, is expected to increase to 64.85 mtpa and the power generation to 1,2790 mw by the end of XII Plan that includes 7,740 mw from liginite-based power plants and 5,000 mw from coal-based projects and 50 mw from wind projects.