Neyveli Lignite Corporation has claimed Rs 150 crore in liquidated damages from BHEL for the technical problems in Thermal Power Station-II expansion, said B. Surender Mohan, Chairman and Managing Director, Neyveli Lignite.

Responding to shareholders at the company’s annual general meeting, he said the 2x250MW project has been delayed due to technical reasons.

BHEL, the main plant package contractor, has taken up rectification work.

The power plant uses a novel technology – Circulating Fluidised Bed Combustion.

The first unit was synchronised last November but was shutdown for setting right the refractory and coil supports.

BHEL has committed to start the unit in December this year.

Similar work will be done in the second unit which will be commissioned in January 2014.

NLC has a power generating capacity of 2,740 MW which will increase to 4,701 MW with the commissioning of its ongoing power projects.

Others include the 1,000-MW Neyveli New Thermal Power Station, which will replace its Thermal Power Station –I.

NLC has ordered equipment for a 51-MW wind farm to be commissioned by next June in Tamil Nadu.

Over 35 MW of solar power plants are also planned with 10 MW to come up initially in Neyveli to be followed up with an additional 15 MW.

It plans to set up a 10-MW facility in Barsingsar, Rajasthan, where it has a 250-MW power plant in the pipeline linked to a lignite mine.

The company also plans to set up a two-million-tonne a year lignite mine at Devangudi, about 18 km from Neyveli, to supply lignite to small industries in the vicinity.