Neyveli Lignite Corporation is on an expansion mode in the power sector. The company has plans to ramp up thermal power subject to government clearances as well as foray into solar. Speaking to Bloomberg TV India , NLC Chairman SK Acharya says the company plans 50 MW of solar energy in Andaman Islands. NLC also aims to hold prices of coal at the same level as last year, he said.

Take us through the details of the power plant you are planning to set up in Odisha. What kind of investment have you envisioned?

It is at a premature state. It does not have any official sanction as of now. The Power Ministry has requested the Odisha government and the Ministry of Renewable Energy for land and a power purchase agreement (PPA) for setting up a 500-mega watt solar plant in Odisha.

We are waiting for a formal consent on that. Almost two years ago, there were talks between the Odisha government and NLC for setting up a pitted power station there with coal from Talabira mines, for which NLC was co-allottee with 15 per cent shares, along with Mahanadi Coalfields Ltd and Hindalco. And the exercises in that regard did not proceed further because the mine got de-allocated a Supreme Court order.

Now, the same Talabira II and III mines have been allotted to NLC and so far no discussion has formally been held to go for a pitted power station there. Though we feel a pitted power station is always economical, we have been allotted those mines to get the fuel security for our coal-based power stations that are coming up.

If there are no clear details on the deal, will you consider a JV for the power plant?

NLC is a government-owned company and its every investment will be subject to the Centre’s approval.

So the Ministries of Coal and Power have to be approached if at all we think of going for a pitted power station. During my interaction with the Odisha government, this issue came up whether we would like to revive our earlier proposal to set up a thermal power station there. To which I responded that it is too early. Let us first get the mine. The mine allotment is for our coal-based power project elsewhere. So Odisha is not in the picture right now. Of course, if the Centre, the Coal and Power Ministries and the Odisha government are eager to support, the possibility can be explored in the future.

What’s the update on the 20 mega watt solar plant in the Andaman and Nicobar Islands?

We are going for 50 mega watt solar power plants — a 20 mega watt plant in Port Blair and a 30 mega watt plant some place else.

What is your current plant load factor (PLF)? What’s your target PLF for FY17?

Except for the new generation facility of 500 MW, the PLF has always been 85 per cent-plus.

Given the recent rise in prices of coal and lignite, has the power generation cost fallen?

We are holding down the lignite price this year… At the end of the five-year period, prices should be different. Last year, our price was ₹1,940 per tonne. We are holding on to the same price this year too. Hopefully, we will be able to hold on to our costs.

Related Topics