Coal news and updates

Neyveli Lignite mines flooded, power generation down

India Coal Market Watch

December 11: The recent deluge in Tamil Nadu has almost marooned Neyveli, greatly impacting production of lignite and power generation at Neyveli Lignite Corporation (NLC), company sources told ICMW.

“Our mining activity has been greatly affected in November and December due to the incessant rains and flooding. Also, power generation has been very low. The situation remains grim and it will take some time to normalise operations,” an official said.

While the extent of production loss was not immediately available, sources said that the lignite mines were flooded and mining came to a grinding halt for at least a few days during the last one month.

Also, power generation at Neyveli facilities dropped to as low as 100 MW levels on some days and the thermal power plants suffered acute shortage of fuel oil which could not be procured due to the inclement weather.

 Company Chairman-cum-Managing Director S K Acharya, in his recent address to NLC employees, said, “We are passing through a very difficult phase, facing the fury of nature in the form of cloudburst and unprecedented rain.”

“Production and generation at our Neyveli complex have been thrown out of gear and the company has suffered a huge setback due to damages to its properties, plant, mines and township and also in terms of loss of production and generation,” he said.

NLC produced around 26.5 million tons (mt) of lignite in 2014-15 and its power generation from all thermal power plants was 19,729.12 MU. In 2015-16, the company has planned to produce 27 mt of lignite and generate 21,363.40 MU of power.

However, given the extensive damage caused by the floods, achieving these targets seems to be a difficult proposition now, sources said.