Coal news and updates

Increasing lignite production would result in the total lignite based power generation capacity of state¬run Neyveli Lignite Corporation Limited (NLC) to rise to 5,640 megawatts level by 2025, the government has estimated. 

Noting that in most cases lignite mines were linked to downstream power stations, Power Minister Piyush Goyal said in Lok Sabha that concerted efforts were being made for timely implementation of ongoing projects and taking up new projects. "On completion of these projects, 26.3 MTPA of additional capacity is envisaged to be added by NLC by 2025 from the existing lignite production capacity of 30.6 MTPA. This additional lignite production would support an additional generation capacity of 2400 MW and the total lignite based generation capacity of NLC would reach 5,640 by 2025," he said during Question Hour. 

Unlike coal, gap in supply and demand for lignite is not material as most of lignite production is linked to downstream pithead power stations and power stations are synchronised with mining operations in such a way that required quantities of lignite is timely available for power generation, he said. Government has allotted three lignite blocks to Gujarat Mineral Development Corporation in August 2015, of which one was meant for power generation and the other two for commercial mining, the Minister said. In addition, Vastan Lignite bloock has been allocated in principle to Gujarat Industries Power Company Ltd for underground coal gasification purposes. Goyal said coal gasification projects have become successful only in two countries ¬ China and the United States ¬ and hence government is taking precautions before allowing large investments in the area at this stage.