The Hindu Business Line : NLC may set up power plant in Gujarat

NEYVELI Lignite Corporation (NLC) is likely to accept an invitation by the Gujarat Government to put up a 1,000-MW lignite-based plant in the State, the company's Director-Power, Mr V. Sethuraman, told newspersons on Friday.

Gujarat, then, is the latest addition to the list of States that have invited NLC to put up a power project. Last year, the Government of Madhya Pradesh had similarly invited NLC to put up a coal-based project in the State. In Rajasthan, NLC's 250 MW project is under way. There is potential for more lignite-based projects in the State, which the company is examining.

In Orissa, negotiations with the State Government over the demand for concessional power has delayed NLC's acceptance of the Hirma project, Mr Sethuraman said.

In its home State of Tamil Nadu, NLC has taken up the 2,000-MW Jayamkondam project, for which a feasibility study is under way. "We will do the project," stressed Mr Sethuraman, adding that the NLC was well experienced to tackle the vexing problem of high `overburden' — the amount of earth lying over the lignite seams.

"Even in our mines we encounter such high overburden," Mr Sethuraman said. One of the issues in the Jayamkondam project, which had been earlier attempted and given up by various parties, was the costs involved in removing large chunks of earth before lignite seams could be reached.

The project is estimated to cost around Rs 6,000 crore, and NLC intends to implement it by itself, rather than promote a new company for it.

There is, however, a slight re-think on the configuration of the project. Earlier, NLC wanted to put up two units of 500 MW first and then go for the next 1,000 MW.

But now, with the advent of the energy efficient supercritical boilers, NLC is mulling three units of 660 MW each or two units of 800 MW.

Meanwhile, NLC has finalised the equipment supplier for its ongoing 2x250 MW power project in Neyveli. "Within a fortnight" orders will be placed on BHEL, Mr Sethuraman said.

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