The Hindu : Business : NLC's expansion of transmission system cleared

Online edition of India's National Newspaper
Thursday, Dec 30, 2004

Business

Business

NLC's expansion of transmission system cleared

By Our Special Correspondent

NEW DELHI, DEC. 29. The Cabinet Committee on Economic Affairs (CCEA) today approved a Rs. 691.83-crore investment for expansion of the transmission system of the Neyveli Lignite Corporation in Tamil Nadu.

The investment would include an IDC (Interest During Construction) component of Rs. 41.35 crores for the expansion of the transmission system associated with Neyveli Lignite Corporation-II, the Defence Minister, Pranab Mukherjee, told the media after the meeting.

The project would be completed within 35 months from the date of commencement, he said, adding that work would start during the 2004-05 fiscal year and completed by the 2007-08 fiscal year. The transmission project would facilitate evacuation of power from NLC-II expansion (2 x 250 MW) project and further dispersal to various beneficiaries of southern region.

The CCEA also gave its approval for extending budgetary support to settle the commercial dispute between the Kolkata based Burn Standard Company Limited (BSCL) and McDermott International. A budgetary support of $675,000 (about Rs. 3.25 crores) along with interest due on date of payment was approved for Burn Standard for settling the `D-15' contract liability towards McDermott International, Mr. Mukherjee said. This would enable BSCL to fulfil its financial obligation arising out of the arbitration. This would also help in getting an early solution of long standing disputes within legal framework.

The CCEA also approved a capital investment of Rs. 302.96 crores and completion cost of Rs. 354.47 crores for the Kulda opencast project of Mahanadi Coalfields Limited with a target capacity of 10 million tonnes annually to be achieved in the sixth year of operation of the project. The project will produce 10 million tonnes of coal of Grade F (non-coking, suitable for thermal power plants). The coal produced will be supplied to the Ib-Valley coalfields of Orissa, an official release said.

Printer friendly page
Send this article to Friends by E-Mail

Business