The Hindu : Business : Centre's nod for NLC expansion

Online edition of India's National Newspaper
Saturday, Oct 02, 2004

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Business

Centre's nod for NLC expansion

By Our Special Correspondent

CUDDALORE, OCT. 1. The Central Government has given its consent to the Rs. 4,196 crore expansion programmes of Neyveli Lignite Corporation. The Cabinet Committee on Economic Affairs has given the clearance, according to sources.

The sources told The Hindu that the proposals included expansion of Mine-II capacity by 4.5 million tonnes and augmenation of power generation of the Thermal Power Station-II by 500 MW.

The finance for the new projects would be mobilised in the equity-debt ratio of 70:30, and would include the foreign equity component of Rs. 1,186 crores.

The Chairman-cum-Managing Director of the NLC, S. Jayaraman, had said that the NLC had embarked on the expansion projects for the creation of about 6,300 MW-capacity by the end of the XI Plan. The two projects would take the NLC closer to its goals, the sources said. The Mines-I, IA and II have a total production capacity of 24 million tonnes annually of lignite annually and with the completion of Mine-II expansion, the total mining capacity would reach 28.5 million tonnes.

The sources further said the two `mega projects' on the pipeline were the 1,000-MW Tuticorin (Rs. 4,000 crores) and the 2,000-MW Orissa (Rs. 8,000 crores) power projects for which the Government had approved the `advanced action plans.'

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