Industry NewsLatest NewsMetals, Minerals, CoalPowerSpotlight

NLC Sanctions 14,945 Crore for Lignite Mine and Power Plant Expansion

NLCIL logo

State-owned Neyveli Lignite Corporation India Limited (NLCIL or NLC India Ltd.) has accorded approval to investments worth Rs. 14,944.91 crore. This information was given by the company in its stock filing dated 21st July 2022.

This sum will be used for developing a greenfield Lignite mine and expanding an existing thermal power station of NLC in Neyveli, Tamil Nadu.

NLC India’s Mine III and Expansion at its TPS II Thermal Power Station

NLC Lignite Mine
NLC India’s Lignite Mine IA in Neyveli, Tamil Nadu

Neyveli Lignite has earmarked an investment of Rs. 3,755.71 crore for developing a greenfield open cast Lignite mine of 11.5 Million Metric Tonnes Per Annum (MMTPA) peak capacity, and 8.71 MMTPA normative capacity. This new mine has been designated as Mine III, and it is expected to start Lignite production by 2026. This will be NLC’s fifth Lignite mine, the other four being Mine I, Mine IA and Mine II in Neyveli, and Barsingsar Mine in Rajasthan.

The mineable reserves of the Lignite block where NLC’s Mine III will be situated amount to approximately 386.87 Million Metric Tonnes. Hence, the life of this mine is estimated to be 35 years.

The mine will be spread over an area of 4841.99 Ha, which will include the mine area, external dump area and relevant infrastructure.

Mine III of NLC India will be linked to its new Lignite-based super-critical thermal power plant, for which the rest of the investment amount has been approved. This Rs. 11,189.20 crore thermal power plant will be the second expansion of NLC’s already existing TPS II Thermal Power Station in Neyveli. It will have two power generation units of 660 MW each, thus adding a total of 1,320 MW to the power generation capacity of NLC’s TPS II.

Neyveli Lignite’s Lignite-to-Methanol Project

Apart from these projects, earlier this year NLC India had proposed to setup a Lignite-to-Methanol plant, which will be the first of its kind in India.

As of now, NLC has appointed Engineers India Ltd. as the Project Management Consultant for this project. This project is expected to start production by March 2027.

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.