Neyveli Lignite Corp to add 1,000 MW this fiscal

Chennai - Integrated lignite mining-cum-power generator Neyveli Lignite Corporation Ltd (NLC) hopes to add around 1,000 MW this fiscal to its existing 2,740 MW capacity, a top company official said.

The company has also drawn up projects to add fresh capacity of 8,555 MW in the medium term.

Speaking to reporters here Monday, NLC chairman and managing director A.R. Ansari said: "This year we will be adding 500 MW at Neyveli and 500 MW at out Tuticorin plant being built in joint venture with Tamil Nadu Generation and Distribution Corporation Ltd. The second unit of the Tuticorin project will be added during 2013-14."

The 500 MW at Neyveli will be from the two 250 MW project based on circulating fluidised bed combustion (CFBC) boiler technology that was bogged down by technical problems for a long time.

According to Ansari, the 8,555 MW fresh addition will be from the following projects: 1980 MW from a coal based power project in Uttar Pradesh in joint venture with Uttar Pradesh Rajya Vidhyut Utpadan Nigam Ltd; 4,000 MW from a coal-based project at Sirkazhi in Tamil Nadu; 75 MW from solar and wind; 250 MW each at Bithnok and Barsingsar at Rajasthan; and 2,000 MW at Odisha based on coal.

At Rs.6 crore per MW, the Odisha, Tamil Nadu and Uttar Pradesh projects would involve an outlay of around Rs.48,000 crore.

Meanwhile NLC closed last fiscal with a turnover of Rs.4,866.85 crore and a net profit of Rs.1,411.33 crore up from Rs.4,295.95 crore and Rs.1,298.33 crore logged during 2010-11.

The company board has recommended a dividend of 28 percent (Rs.2.80 per share) and the total outflow including distribution tax will be Rs.545.97 crore for 2011-12.

Queried about the strike by the contract workers, Ansari said the unions are not adhering to the terms of the settlement signed earlier.

"The contract workers at NLC are highest paid in the country. Regularising them will have its impact in all other public sector units and further the matter is in the Supreme Court," he said.

According to him, the company would regularise the contract workers provided they are first enrolled with Industrial Cooperative Society formed for the purpose.