NLC India Limited (formerly Neyveli Lignite Corporation Limited) is spreading its wings in several parts of the country. It is working on a vision to meet the rising power demand of the country. The NLCIL is constructing its first coal-based supercritical thermal power plant – NUPPL, at Uttar Pradesh’s Ghatampur tehsil in a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL).
In an exclusive interview with Anish Mondal of Financial Express Online, Prasanna Kumar Motupalli, Chairman and Managing Director (CMD) of NLC India Limited talks about the growth, reforms and upcoming projects.
1. With the growing power demand in India. What are the steps you are taking to fulfill the same? Please also elaborate the growth plan of NLC India Limited?
As per CEA report, the current installed capacity of India is 4.16 lakh MW and out of it, the share of thermal capacity is around 2.37 lakh MW, which is around 57%. The share of Renewable power is 1.25 lakh MW, which is about 30%. So, NLC India Limited is aggressively planning to add capacity both in Thermal as well as Renewable Power capacity.
At present, as part of capacity addition in Thermal side, the NUPPL – a joint venture with Uttar Pradesh Govt. – is in an advanced stage of commissioning, which would contribute 1980 MW, that is, 3×660 MW. And we are having plans to have 4000 MW Ultra Supercritical Thermal power station at Talabira in Odisha, in two stages, that is, 3x800MW in first stage and 2x800MW in second stage.
Presently, we are having the Talabira Mines in operation in Odisha. In the last financial year, we have produced the highest ever 10 million metric tons of coal from the Talabira mine. Hence, with the imminent coal availability, for the proposed 3×800 MW capacity of first stage Talabira Thermal, we are aggressively moving ahead for awarding of Contracts. The tendering process is under way and the award of contract is expected by December in the current financial year.
In addition, we are also planning to have the country’s first Supercritical Lignite based Thermal Power Station at Neyveli with a capacity of 2x 660 MW. We are already having required land for this project and the tendering process is in advanced stage for award of contract by December this year.
The company’s mission is, by 2030, we are planning to have about 12,000 MW Thermal Capacity and 6000 MW Renewable Power capacity.
We are also planning to install a 50 MW Renewable Power plant in our mine reclaimed land and for that, tenders are already in place for such a project. Further in this Renewable side, we are having plans to add about 2000 MW.
2. The government talks on reforms in the power sector. What are major challenges that need to be taken care of?
As on date, the government is giving a lot of focus on adding Renewable capacity and a parallel reduction in Thermal capacity. But the main challenge now is how to integrate so much Renewable capacity into the main grid. The other one is, lack of effective storage system for Renewable power, so as to utilize the same during the night. So, whatever reforms are going to happen in future, we are in a positive direction.
The main focus will be on the Renewable power storage system, particularly on the pumped storage system, which is possible in large quantities. Presently, the government has announced various schemes for encouraging the renewables capacity addition.
3. India needs more than 10 lakh GW of power generation by next two decades. So, how do you think that the government will be able to solve this issue through this power unit?
Yes, you are 100 percent correct that our national power requirement is growing day by day and it is increasing at an annual rate of almost 9 per cent, and it is expected to reach 10 lakh gigawatt requirements by 2050. The total energy requirement is also going to increase to 377.6 billion units to meet the government’s initiative of providing round-the-clock electricity.
Moving towards this objective, things are improving favorably, and the capacity addition program is also going on well, and we are hopeful that this requirement of 10 lakh GW of power generation over the next two decades can be met.
To cite an example towards this, our 3x 660 MW NUPPL Thermal plant, which is going to be commissioned in the current financial year, will contribute a lot to the requirements of not only the State of UP, but for Assam also. As per the power purchase agreement, about 75% will be supplied to Uttar Pradesh and the remaining will be supplied to the state of Assam. So, I think that this 1980MW Power Plant, which is situated in a very important location of Uttar Pradesh will contribute to the progress of Assam also.
4. When will NUPPL be commissioned this year?
The first unit is expected to be commissioned in the quarter two of the current financial year. We are targeting COD before March 2024.
5. Why have you chosen this location for building this power plant?
The address for this project was initiated almost 10 years back and at that point of time, while the demand supply scenario was assessed, there was a gap in demand and supply. So, the necessity of a high powered and high capacity thermal power station in the area was felt at that point of time. And finally NLC India Limited took it as a challenge for installation of the power plant in this area.
6. Will it (NUPPL) help the locals to get employment opportunities?
Yes, yes of course, as on date, the construction activities are in full swing and almost around 1000 workers are engaged for the construction activities. And I think this will continue after the commissioning of the plant and during the regular operation of the units also.
7. How will this power plant help the state of UP become a major supplier of electricity in the country?
For all industrial development of the country, the primary requirement is development of the power sector. I think, it is 2,00,000 MW of capacity that is being installed in Metropolis that will help in the all round growth and development and industrialization.
8. How much metric tonne of coal will be required for this power plant (NUPPL) to generate electricity per month?
The requirement is around 7 to 8 million metric tons per year.
9. In the FY 2022-23, the NLCIL has registered a growth of 3 percent than 2021-22. Your net profit increased by 28%. What is your target for this fiscal year?
We are having an aggressive plan to increase the total power generation capacity and particularly for our contribution from renewables and thermal thermal power sector. So, our finances will increase by at least 10 to 15% in the next financial year.
10. Currently NLC India Limited is a Navratna, has a plan to become a Maharatna, what is your say on this?
I could proudly say that NLCIL is the first public sector in the energy sector in the country, established way back in 1956. Recently, we celebrated our 67th year of inception. With the best efforts and perseverance of the team, we could achieve the Navratna status long back and we are having clear cut targets to get the Maharatna status at the earliest.