State Electricity Boards’ dues to Neyveli Lignite Corporation have mounted to over Rs 4,351.83 crore as of last month.

The Tamil Nadu Generation and Distribution Company is the largest debtor with dues of about Rs 3,496.52 crore.

Neyveli Lignite is pursuing the utilities for their dues. However, it is optimistic that the Tamil Nadu utility will settle its power dues in two-three months as it is expected to tie up financial assistance with the Rural Electrification Corporation and the Power Finance Corporation, said B. Surendra Mohan, Chairman and Managing Director, Neyveli Lignite.

The Government is also in the process of restructuring the finances of the utilities, he said.

Addressing shareholders at the annual general meeting, he said, in the current year, between April and August, the lignite production and electricity generation have been buoyant.

Lignite output was about 107 lakh tonnes, which is four per cent higher than in the corresponding period last year.

Electricity generation was 8,293 million units, which is seven per cent higher.

During this period, the operation income was Rs 2,240 crore and operating profit Rs 578 crore, which are about 11 per cent higher than the corresponding period.

The mining and power generation company expects its power generation capacity to jump to 4,700 MW from the present 2,740 MW in the next few years.

The additions are to come from a 1,000-MW new Thermal Power Station that will replace the present 600 MW unit at Neyveli; a 1,000-MW coal-based power project at Tuticorin; 50 MW of wind power and 10 MW of solar power projects.

The company is in the process of tendering for these projects.

Neyveli Lignite is planning to develop a two-million-tonne a year lignite block at Devangudi, about 18 km from Neyveli, to meet the fuel needs of small industries in the region, he said.

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