NLC India plans to set up power project in Gujarat

NLC India Ltd (NLCIL) said it is in the midst of executing power projects with a total capacity of more than 11 GW, including thermal and solar. The lignite-to-methanol project of the corporation is scheduled to be finished in March 2027.

Through seven projects across the country, the business will add approximately 5.6 GW of solar capacity. These projects will be commissioned between March 2024 and FY28, according to firm management during its Q2FY24 conference call.

Among these renewable energy projects are a 600 MW solar project from GSECL (Gujarat State Electricity Corporation Ltd) solar park Tender (300 MW plus 300 MW under Greenshoe option) in Khavda, Gujarat, a 1000 MW solar power project in Assam through JV Mode, and an 810-MW solar project from Rajasthan Rajya Vidyut Nigam Ltd (RRVUNL).

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The company's net profit for the half year ending September 30, 2023 was 1452 crore, up from 873 crore in the previous fiscal year.

NLC India reported a net profit of 1121 crores in the second quarter.

NLC India is also developing 5.7 GW of coal-fired projects, including the 1980 MW Neyveli Uttar Pradesh Power Ltd project, a joint venture between NLCIL and UPRVUNL Ghatampur Thermal Power Project (GTPP), 2400 MW NLC Talabira Thermal Power Project, and 1320-MW lignite-based Thermal Power Project TPS II 2nd expansion.

Estimated capital expenditure
The anticipated capital expenditure for these thermal projects is over 50,000 crore. While the first project is scheduled to be completed by March 2024, the other two thermal projects are scheduled to be completed by March 2029.

Overall, the corporation intends to grow to 17 GW by 2030. Thermal capacity will expand to 11 GW from 4.6 GW today, while total renewable capacity will increase to 6 GW from 1.4 GW now.

It also intends to increase mining capacity to 82 mtpa by 2030, up from 50 mtpa today. It is now working on 12 mtpa projects that will be completed between March 2024 and March 2026.

As part of its diversification strategy, the business has been working on a 0.4 mtpa lignite-to-methanol project in Neyveli, Tamil Nadu. The 4,394-crore project, which will require 2.26 MTPA of lignite, is set to be finished in March 2027.

News by Rahul Yelligetti