Neyveli Lignite plans to enter power transmission sector
May 27th, 2011 - 9:21 pm ICT by IANSChennai, May 27 (IANS) Integrated mining-cum-power producer Neyveli Lignite Corporation Ltd (NLC) is looking at further forward and backward integration with plans to get into power transmission and acquiring coal mines abroad, a top official said Friday.
“We had discussions with TNEB (Tamil Nadu Electricity Board) on partnering with them in their power transmission venture about one and half months back. We are also looking at acquiring lignite/coal mines in Argentina and South Africa,” NLC chairman and managing director A.R. Ansari told reporters here.
On the proposed joint venture with TNEB’s transmission subsidiary, Tamil Nadu Transmission Corporation Ltd (TNTCL), he said: “We have the experience in power transmission and funds are not an issue.”
Speaking to IANS, K. Sekar, director (finance) said the state government’s transmission company is short of cash which NLC can provide. Further NLC was in the power transmission business earlier before that business was transferred to Power Grid Corporation, he said.
He said such a venture will take the relationship with the TNEB and its subsidiaries further as NLC is already in the process of constructing a power plant in Tuticorin in the state partnering with the TNEB.
The 1,000 MW power project is expected to start generation in 2012-13.
According to Sekar, the investment in the transmission project may be around Rs.400 crore.
NLC is planning to put up a 2,000 MW coal based power project on the coastal town Sirkazhi in Tamil Nadu and has signed the power purchase agreement (PPA) with TNEB.
The mining-cum-power company has also signed PPA for its proposed 2,000 MW coal based power plant in Uttar Pradesh in joint venture with Uttar Pradesh Rajya Vidhyut Nigam Ltd (UPRVNL).
According to Ansari, the company is planning to take up its generation capacity to 10,000 MW from the current 2,740 MW in ten years time frame.
Meanwhile, NLC closed last fiscal with a revenue of Rs.3,949.08 crore and a net profit of Rs.1,298.33 crore as against Rs.4,121.02 crore and Rs.1,247.46 crore posted during 2009-10.
NLC’s board has recommended a dividend of Rs.2.30 per share involving an outgo of Rs.385.17 crore for 2010-11.
- Neyveli Lignite to power capacity to 4,640 MW by 2015 - Jul 08, 2011
- Neyveli Lignite blames BHEL for production hitch - May 28, 2011
- BHEL looks at South African market for CFBC boilers - Jan 31, 2012
- Neyveli Lignite to go alone on Gujarat power project - May 27, 2011
- Techincal problems continue to dog Neyveli lignite unit - Apr 10, 2012
- Neyveli Lignite to add 250 MW power this fiscal - Dec 24, 2011
- BHEL to commission piping plant in Tamil Nadu in April - Jan 30, 2012
- Coastal Energen looking to buy out Al Rostamani stakes - Jan 19, 2012
- BHEL still keen on Udangudi power project - Apr 08, 2012
- Neyveli Lignite to expand its thermal power projects in Tamil Nadu - Jan 10, 2012
- BHEL's exit from Udangudi Power depends on government's offer - Feb 26, 2012
- Tamil Nadu hopes to save Rs.900 crore in Udangudi project - Feb 29, 2012
- Filing of case against top Neyveli Lignite official stayed - Jul 08, 2011
- Udangudi Power project may not need fresh environment assessment - Feb 27, 2012
- Tamil Nadu scraps power joint venture with BHEL - Feb 24, 2012
Tags: ansari, backward integration, coal mines, corporation ltd, current 2, director finance, generation capacity, lignite coal, nigam ltd, nlc, power grid, power producer, power transmission business, ppa, sekar, tamil nadu electricity board, transmission company, transmission project, transmission sector, tuticorin