Coal news and updates

NLC weighing 89 overseas coal assets proposals

Neyveli Lignite is examining 89 proposals from Indonesia, Australia, Mozambique, the US and a few other countries offering coal assets and long-term fuel supplies among other things for its upcoming power projects.

The company is likely to take a final call on these by November.

"We have received 89 proposals from various geographies, including Indonesia, Mozambique, Australia, Columbia and the US, for acquiring assets as well as long-term coal linkages.

"We are evaluating the proposals and would take a final decision in the next two months," a top Neyveli Lignite Corporation (NLC) official said.

The 89 proposals are under five different categories, including joint ventures, he added.

The official said that the company was looking to acquire two to three assets abroad for supply of 2-10 million tonnes (MT) of coal in a year.

"The acquisition of coal assets by the company would ensure fuel security for the present as well for the future coal-based power projects," he said.

The Tamil Nadu-based lignite miner had earlier this year floated 'Expression of Interest' (EOI) for acquiring assets abroad for long-term coal supplies for the upcoming power plants and also for acquiring stakes in mining firms.

NLC has plans for growth in power generation capacity and is expanding its activities not only at Neyveli, but also in other parts of the country. Its fuel needs are likely to shoot up to 10 MTPA once all these projects are commissioned.

It is already in the process of setting up two power projects in Tamil Nadu and Uttar Pradesh at an estimated cost of Rs 24,770 crore, to take its capacity to 11,195 MW.

In Tamil Nadu, it has plans to set up a 4,000 MW coal- based power plant near Thirumullaivasal village of Sirkali taluk, Nagapattinam district. In Uttar Pradesh, it will set up a 1,980 MW (3X660 MW) plant in Ghatampur in Kanpur Nagar district at an estimated cost of Rs 14,375.4 crore.

Besides, in Rajasthan, the company "has proposed setting up a thermal power plant of 250 MW capacity... at an aggregate estimated cost of Rs 2,298.83 crore," it had said last week.

Also, it has planned to set up another new power plant in Rajasthan with a capacity of 250 MW as an extension of the existing power plant there at an investment of Rs 2041.78 crore.

The 'Navratna' firm operates four mines with a total capacity 30.6 MTPA, and four thermal power stations of total capacity of 2,740 MW.

The Centre last month had sold over 5.97 crore shares, or 3.56 per cent stake, in NLC through an institutional placement programme (IPP) at a price band of Rs 58-60 a share.

Source: PTI