Government allots two coal blocks to Neyveli Lignite

KOLKATA: The union coal ministry has allocated two coal blocks in Chhatisgarh and Jharkhand to Neyveli Lignite Corporation (NLC) for implementing its power projects in Tamil Nadu and for another project in Uttar Pradesh. The development comes close on the heels of the union goverment's decision to divest 5% of its stake in NLC.

NLC is planning to set up a 4,000 MW coal-based power plant near Thirumullaivasal village at Sirkali in Tamil Nadu in two phases. In the first stage, NLC has proposed to set up a 1,980 MW power project at a cost of Rs 10,395 crore for which it is in the process of acquiring land through the state government and obtaining clearances from various statutory authorities. Based on the recommendation of the Inter Ministerial Committee, the Union Ministry of Coal has allocated Jigla-Barpalli Coal block at Korba and Rajgarh districts of Chhatisgarh for the Sirkali Project. This block has a coal reserve of 396 million tonne (mt) spread over an area of 26 sq km.

Similarly, NLC is also setting up a 1,980 MW (3X600 MW) coal-based thermal power project at Ghatampur in Kanpur Nagar District of Uttar Pradesh at an estimated cost of Rs 14,375.4 crore in joint venture with Uttar Pradesh Rajya Vidut Uthpadan Nigam Ltd. For the Ghatampur project, the Ministry has allotted Pachwara-South Block of Rajmahal coal field in the Dumka district of Jharkand. This block has a coal reserve of 279 mt over an area of 6.5 sq km.

With the implementation of these projects and other projects which are in the pipeline, NLC's power generation capacity will increase to 11,195 MW. Based in Tamil Nadu, NLC currently has an generation capacity of 2,490 MW, of which 1,178 MW is supplied to Tamil Nadu.