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Our Bureau

Chennai, May 27 Neyveli Lignite Corporation’s net profit for the fourth quarter of last year was nearly 15 times as much as in the corresponding quarter of the previous year, but that was more due to a quirk of accounting rather than performance.

In Q4 last year, the company had to make some adjustments for over-provisions made in the previous years —basically, the company had assumed certain tariffs for its power, but later, the Central Electricity Regulatory Commission allowed it a lesser tariff.

For the full year 2006-07, NLC had to reduce its profits by about Rs 500 crore on account of the ‘adjustments’ it had to make.

Nevertheless, the company’s performance for 2007-08 was marked by record mining of lignite and power generation. It produced 17.45 billion units last year compared with 14.77 billion units in the previous year.

The company’s board has recommended a final dividend of Re 1 a share (10 per cent), taking the total dividend for the year to Rs 2 a share.

NLC’s installed capacity will increase from 2,490 MW, between its two stations in Neyveli. By the end of this year, the installed capacity will go up by 500 MW. The addition will come equally from expansion at Neyveli and a new plant in Rajasthan.

NLC’s Chairman and Managing Director, Mr S. Jayaraman, said that the Rs 2,030-crore project for expansion of Thermal Power Station II at Neyveli is underway. The project is to put up two units of 250 MW each. The first of them will be commissioned this financial year and the next, a few months later. Lignite for these plants will come from Mine-II, whose capacity is also being expanded to 15 million tonnes from 10.5 million tonnes at a cost of Rs 2,161 crore.

The Rs 1,114-crore thermal power project in Rajasthan will go on stream this year. This project is for putting up two units of 125 MW each, lignite for which will come from the Barsingar mine in the State. The mine is also being developed by NLC at a cost of Rs 254 crore.

Feasibility report for the 1,500 MW Jayamkondan project is expected to be ready next month, Mr Jayaraman said. On the 2,000 MW Hirma project in Orissa, Mr Jayaraman said that the mining and power generation operations would be done through separate companies.

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