Lignite and power major NLC India Ltd has reported a 35 per cent fall in its net profit at ₹331 crore for the quarter ended June 30, 2023, compared with ₹506 crore in the year-ago period on the back of a drop in topline.

Revenue of the company plunged 16 per cent during the June 2023 quarter at ₹2,601 crore (₹3,095 crore) . Total expenses stood at ₹2,169 crore (₹2,234 crore) .

Row over land

NLCIL is facing a deficit in the availability of land at Neyveli for lignite mining, which is adversely impacting the generation of power at thermal power stations located in Neyveli, as local district authorities are facing stiff resistance for taking measurements of structures for further land acquisition and also in getting possession of already acquired land to handover to the company, the company said in its filing with exchanges.

In view of the immediate requirement of lands in Neyveli, the company has taken some measures.

Based on the recommendations of the district authorities for enhancing the compensation packages as well as offering very attractive and socially and environmentally compliant rehabilitation and resettlement (R&R) and other welfare initiatives to adequately address the human side of the issues.

I will be giving preferential treatment to all project-affected people in competitive examinations of recruitment. Also, it is holding frequent meetings with authorities at both State and district levels.

The company is also initiating efforts to identify alternate sources of lignite to ensure continuous operations.

Meanwhile, tension prevailed at Neyveli on Friday as there was a protest against the acquisition of lands by the company. The protest also turned violent with people pelting stones at the police, who used tear gas and water cannons to disperse the protestors.

Shares of the company ended 0.17 per cent higher at ₹118.85 apiece on the BSE on Friday.

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