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NLC to Expand Mining Operations, Targets 17.8 GW Power Generation by 2030

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Neyveli Lignite Corporation of India Ltd. (NLC India or Neyveli Lignite), has set definite targets for Power Generation and Mining Operations to be achieved by 2030. The company’s target is to have 11,800 MW of thermal power capacity and 6,031 MW of Renewable Energy capacity by 2030. For its mining operations, Neyveli Lignite targets achieving 40.10 MMTPA of Lignite production and 44 MMTPA of Coal production capacity by 2030.

Apart from this, NLC had also proposed a Lignite-to-Methanol plant earlier this year, which is expected to be commissioned by March 2027.

Some of NLC’s Ongoing and Upcoming Thermal Power Generation Projects

Neyveli Uttar Pradesh Power Ltd. (NUPPL), which is NLC’s joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, is developing the Ghatampur Thermal Power Station (TPS) in Uttar Pradesh. The sanctioned cost of this project is Rs.17,238 crore.

NUPPL Ghatampur Power Plant
NUPPL’s Ongoing Ghatampur Thermal Power Project

This power plant will have three units of 660 MW capacity each. Unit I of the Ghatampur TPS is expected to be complete by 31st March 2023, while units II and III have anticipated completion dates of 31st July 2023 and 30th November 2023 respectively.

As on 30th June 2022 78.04% physical progress on this project has been made.

Another ongoing thermal power project by NLC India is the expansion at its TPS II Thermal Power Station at Neyveli, for which an amount of Rs. 11,189.20 crore was recently sanctioned by the company’s board.

Neyveli Lignite’s major upcoming thermal plant is the Talabira Thermal Power Plant in Odisha. This plant will be a coal-based supercritical thermal power plant, which will have 4 units of 800 MW capacity each. This project will be developed in two phases. In the first phase, three out of four units will be completed at an estimated cost of Rs. 19,422 crore. In the second phase the fourth unit of the thermal plant will be completed. The land requirement for this project is 1,694 acre.

Neyveli Lignite’s Plans for Developing Renewable Energy Generation Projects

NLC’s upcoming plans for renewable power generation include a 1,000 MW Solar Power Project in Assam which is to be executed by a Joint Venture (JV) between NLC and Assam Power Distribution Company Limited (APDCL). The estimated cost of developing this project is RS. 5,000 crore. The board of NLC India gave its approval for signing a Memorandum of Understanding (MoU) with APDCL for this project on 30th May 2022.

NLC India has also secured a contract under Tranche – IV Solar Energy Corporation of India’s (SECI) scheme for the development of 1,200 MW ISTS – Connected Hybrid Power Projects to develop 150 MW of Hybrid Power Generation. Out of this 150 MW, 100 MW will be Solar power, while 50 MW will be wind power. The estimated cost for this project has been stated as Rs. 876.53 crore, and tenders for developing this project have been floated by NLC.

Apart from these projects, NLC will also be developing 510 MW Solar power generation capacity under Phase – II of Central Public Sector Undertaking (CPSU) Scheme. This solar capacity addition will be done using domestically-manufactured Photovoltaic cells and modules, and it is expected to be complete in April 2024.

Neyveli Lignite’s Ongoing and Upcoming Mining Projects

Neyveli Lignite is engaged in the development of Pachwara South Coal Block Mine, which was alloted to NUPPL in 2016. This mine in Jharkhand will have a peak capacity of 13.5 MMTPA, and a normative capacity of 9 MMTPA. Mining operations in this coal mine are expected to commence in September 2023. This mine will supply coal to the Ghatampur Thermal Power Station (mentioned above).

The company’s board recently sanctioned an amount of Rs. 3,755.71 crore for developing a greenfield opencast Lignite mine in Neyveli, Tamil Nadu. This mine has been named ‘Mine III’, and it is expected to start Lignite production by 2026.

NLC has placed bids for two coal blocks in the IB valley Coal Field, Jharsuguda, Odisha. These are Ghogharpalli & its Dip Extension block, having a 20 MMTPA coal production capacity, and Rampia & Dip Side of Rampia block, having 15 MMTPA coal production capacity.

About Neyveli Lignite Corporation India Ltd.: Chennai-headquartered Neyveli Lignite Corporation was incorporated in 1956. It is engaged mainly in the mining of Lignite and Thermal Power Generation. It is a Navratna Public Sector Undertaking of the Government of India.