NLC to Invest Rs 24,000 Cr, Expand RE Portfolio to 6GW by 2030
State-owned Neyveli Lignite Corporation India Ltd. (NLCIL or NLC India) will be investing a sum of about Rs. 24,000 crore to expand its Renewable Energy (RE) portfolio to over 6 GW by 2030.
This information was shared by Mr. M Prasanna Kumar, Chairman and Managing Director of NLC India while speaking to ETEnergyworld on 17th July 2023.
NLC India’s Renewable Energy Expansion Goals
During the company’s earnings call for NLC’s Q4 FY-23 financials, Mr. Mukesh Agarwal, Executive Director (Finance), NLCIL, said, “We are enhancing our renewable capacity from the present capacity of solar 1370 MW to 5,880 MW and wind project from 51 MW to 151 MW”.
Earlier, CableCommunity had covered NLC India’s plans for expansion, including those to expand its RE generation capacity to 6,031 MW by 2030.
NLC’s Renewable Energy Expansion to be Funded by Debt & Equity
Mr. M Prasanna Kumar shared that the required investment of about Rs. 24,000 crore will be funded through debt and equity. Out of the total amount, 80% will be financed through debt, while 20% will be raised through equity.
Current Status of Some of NLC India’s Upcoming RE Projects
NLC-APDCL JV to be Formed for Executing 1,000 MW Assam Solar Project
NLC India has planned a 1 GW solar power project in Assam, which will be executed by a joint venture (JV) between NLC and Assam Power Distribution Company Limited (APDCL).
Speaking of the project‘s current status, Mr. Mukesh Agarwal said “We are moving with the Assam Government for installation of 1000 MW solar plant at a cost of Rs. 5,500 crore”.
He clarified that the company had signed a Memorandum of Understanding (MoU) with APDCL on 9th August 2022 for this project and that formation of the NLC-APDCL JV is under progress.
NLC’s Other Anticipated Renewable Energy Power Projects
Mr. Mukesh Agarwal, while briefing NLC’s investors during its Q4 FY-23 earnings call, said, “We are working for the renewable project of 510 MW and 150 MW with a capital cost of Rs. 3,768 crore”. This referred to the RE power capacities to be developed that the company had secured in auctions in 2021.
In August 2021, the company won 150 MW solar-wind hybrid power capacity (100 MW solar power and 50 MW wind power) to be developed in Solar Energy Corporation of India’s (SECI) auction.
The 510 MW solar power capacity to be developed was secured from Indian Renewable Energy Development Agency Ltd. (IREDA) in September 2021.
Apart from this, the company’s Investor Presentation from May 2023 states that a tender for the development of 200 MW solar power capacity under IREDA’s CPSU scheme has been floated. As per the tender, this solar power capacity has to be Inter-State Transmission System (ISTS)-connected.
Moreover In March 2023, NLC India awarded Letter of Award (LoA) to Tata Power for its 300 MW solar project which will come up at Barasingsar in Rajasthan’s Bikaner. This project’s estimated cost of development stands at Rs. 1,755 crore.
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.