Neyveli Lignite Corporation to set up power plant in UP

Lucknow, Feb 22 (UNI) After successful entry of several major private power companies in Uttar Pradesh, Neyveli Lignite Corporation to has show interest in setting up a 2,000 megawatt coal-based plant in the state.

Already, National Thermal Power Corporation Limited (NTPC) has decided to set up a mega 4,000 MW thermal power plant in the backward and drought hit Lalitpur of the Bundelkhand region.

The state government is likely to sign the MoU with Neyveli Lignite and NTPC for setting up the power projects in the joint sector next month.

These two power projects would add 6,000 MW with an investment of Rs 30,000 crores.

UP government had already invited bids from the private companies for the 1200 MW each Bara and Karchana thermal power projects and it would be awarded shortly.

According to sources, Neyveli Lignite is expected to finalise the location of the plant very soon between two sites identified by the power department where the required availability of land and water is present. The plant would come up on 2,000 acres of land and would entail an investment of Rs 10,000 crores.

Earlier, Neyveli Lignite Corporation Limited CMD S Jayaraman met Cabinet Secretary Shashank Shekhar Singh last week and formally proposed setting up a 2,000 MW thermal power plant in the state.

''Work on the project had been going on for sometime and the power department has identified two locations in Fatehpur and Farrukhabad for setting up of the plant'', sources added.

UP Power Corporation Ltd (UPPCL) Managing Director Avnish Awasthi said the Neyveli Lignite team will be visiting the two sites and they hope to finalise one of the locations very soon and thereafter send the proposal for clearance to the ETF (Energy Task Force).

Besides Neyveli Lignite and NTPC, other private power companies engaged in the state include Lanco Kodapalli which had been awarded 1,000MW Anpara C thermal power project and Reliance Energy, who are setting up the 600 MW Roza thermal project station.

Regarding coal linkages for the projects, Mr Awasthi said that the state government has got 50 per cent allocation of the 800 million tonnes Chendipara mines in Orissa and the coal can easily be sourced from there.

Sources said of the agreements with both the NTPC and Neyveli Lignite would be completed in March, before the current fiscal year ends.

Neyveli operates thermal power plants-three large mines, a fertiliser factory manufacturing urea, and a briquetting and carbonising plant. A large percentage of the thermal electricity generated in Tamil Nadu comes from the power plants in Neyveli. The company also supplies a large quantity of sweet water to Chennai.

Dubbed as a ''Ultra Mega Power Plant project'', the Lalitpur project of NTPC has already been forwarded to the ETF last week for clearance and the agreement is expected to be signed as soon as the first week of March.

The Lalitpur-based 4,000 MW plant of NTPC with an investment of Rs 20,000 crores will be set up on 3,280 acres of land which is already in the process of being acquired. Located near the Betwa river dam near Jakhawa town in the district sourcing water for the project would not be a problem, UPPCL MD said.

Meanwhile, the state government would seek a nod for coal linkages for the Lalitpur plant from the Western CoalFields, which would require 200 million tonnes of coal per annum. They would also approach the centre for custom duty benefits that have been incorporated in the central governments Ultra Mega Power Projects policy. At 80 per cent PLF (Plant Load Factor) the Lalitpur project is expected top produce 28,000 million units per annum. The state government proposes to have 16 per cent of the equity stake in the joint venture with NTPC and would seek to receive 75 per cent of the power generated from the plant as the states share.

Presently, UP faces peak hour shortage of about 2,500 MW and within five years time, the state would be identified as power surplus following completion of these two projects along with other private sector power projects in Bara and Karchana are commissioned.

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