NCL to accelerate UP coal power project

NCL to accelerate UP coal power project

Central public sector mining and power utility Neyveli Lignite Corporation NLC India Ltd has been making efforts to put its Rs 17,000 crore joint venture (JV) project in Uttar Pradesh back on track after delays due to Covid-19.

Neyveli Uttar Pradesh Power Ltd is a joint venture of 51:49 ratio between NLC India Ltd and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. It is setting up a coal-based thermal power plant that has a capacity of 1980 MW situated in Ghatampur, Kanpur Nagar district, Uttar Pradesh. The power plant of 1980 MW (3*660 MW) would cost Rs 17,237.80 crore along with an original commissioning schedule dated in December 2020 for its Unit 1. This will be followed by the remaining two units within six months each. It was approved in July 2016 by the Centre. During 2019-20, the JV has spent a capital expenditure of Rs 3,525.18 crore. The total expenditure till March 2020, was estimated at Rs 9,199.20 crore.

The commissioning of Unit 1 has been deeply impacted by Covid-19.

The project schedule has been impacted by the pandemic. Moreover, the management has made efforts to accelerate the progress of the project and bring it right on schedule. They intend to increase the manpower strength from 4,200 to 6,000. Additionally, they would utilise incentives and several other measures announced by the Central Government that would help revive the economy.

Also, the JV has signed a power purchase agreement with Uttar Pradesh Power Corporation to supply 75% of the power. The coal supply is linked to Packwara’s south coal block located in Jharkhand. The Ministry of Coal has approved the Bridge coal linkage of 0.5 MT for 2020-21. The remaining would be fulfilled by Talabira 2 and 3 mines as per the report shared by NLC India.

In the fiscal year 2020, NLC India added 1,209 MW and on 30 June 2020, it added 17.5 MW. Moreover, it retired 400 MW, leading to its total installed capacity to 4,661.06 MW.

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