Neyveli Lignite Corporation Ltd (NLC) will set up mining-cum-power projects in Gujarat and Rajasthan with an investment of Rs 5,500 crore, and Rs 6,300 crore respectively.
As part of its policy to diversify into coal for power generation, NLC will set up 2,000 mw coal-fired power plant in Orissa. NLC is joining hands with Hindalco and Mahanadi Coalfields Ltd (MCL) for executing mining projects.
According to S Jayaraman, chairman and managing director, NLC, ?The investment in Gujarat for an integrated 8 million tonne (mt) a year lignite mine and 1,000 mw (250 x 4) power project is estimated to cost Rs 5,500 crore.?
In Rajasthan the plan is to have three mine-cum-power plants in different sites in Bikaner district with a total capacity of 9 mt and power plants with capacity of 1,000 mw with an investment of over Rs 6,300 crore.
The Gujarat project is to be implemented through a joint venture company promoted by the state government and NLC with an equity in the ratio of 26:74.
In this regard, an MoU was signed with the Gujarat government in July, 2006. Site for locating the power plant was identified and land details have been collected.
The Centre has sanctioned funds to take up preliminary works, preparation of feasibility report and environment report for the proposed mine-cum-power project.
