NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » Neyveli Lignite to invest Rs 10,000 cr in power projects

Neyveli Lignite to invest Rs 10,000 cr in power projects

September 04, 2009 03:51 IST
Neyveli Lignite Corporation Ltd is planning to invest Rs 10,000-12,000 crore in setting up power projects. It is also planning to foray into renewable energy, by setting up wind energy farms and solar units.

This year's target is to increase the profit after tax by 40 per cent to Rs 1,200 crore from Rs 821 crore in 2008-09.

Speaking on the sidelines of the company's annual general meeting here today, A R Ansari, chairman and managing director, said the investments would be funded through issue of bonds through private placements.

"The proposed investment would help the company achieve its target of becoming a 2,500 Mw power generation company by 2012," he said.

Apart from this, NLC is also planning to enter into power projects using fuel other than lignite in different states. The company has entered into a joint venture agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd for setting up a coal-based power plant with a capacity of 2000 Mw at an estimated cost of Rs 10,000 crore in Uttar Pradesh, with 50:50 equity participation. The UP government has given its in-principle approval to allocate 2,500 acres of land and also 80 cusecs of water, according to NLC's annual report.

Similarly, the company is setting up a 1,000 Mw unit along with Northern Coal Fields Ltd in Madhya Pradesh.

NLC is also planning to participate in the bidding process for setting up Ultra Mega Power Projects with a capacity of 4,000 Mw in the states of Tamil Nadu, Orissa, Maharashtra, Karnataka and Chhattisgarh.

As for renewable energy, Ansari said NLC will set up wind farms between Tuticorin and Kanyakumari in Tamil Nadu. Initial capacity would be 50 Mw, which will be increased to 200 Mw in a phased manner. Setting up each Mw of a wind project would cost Rs 6.5 crore, he said.

The company has appointed Chennai-based ITCOT Consultancy Services to prepare the techno-economic feasibility report. "By next October, the company will commence production of power through wind,"  said Ansari.

T E Narasimhan