NLC, Guj in pact for lignite mine-cum-power plant project

Chennai, July 28 (UNI) The Public Sector Neyveli Lignite Corporation (NLC) today signed a Memorandum of Understanding (MoU) with the Gujarat Government for setting up an integrated lignite mine-cum- power project in the state at an estimated cost of Rs 7,500 crore.

The MoU was signed by NLC Chairman S Jayaraman and Mr Balwant Singh, Principal Secretary, Energy and Petrochemicals in the presence of Gujarat Chief Minister Narendra Modi.

The lignite mine will have a capacity of eight million tonne. The 1000 MW plant will be established at Valia-Mangrol Region of South Guajrat.

It would be scaled up to 12 million tonnes per annum and 1500 MW in the second phase, Mr Jayaraman said.

He said NLC would have a shareholding between 74 and 89 per cent in the Joint Venture company with the balance held by the Gujarat Government and companies.

The project will have a debt equity ratio of 70:30 and the mine and the plant would be commissioned by July 2011.

''The signing of MoU marks the culminatiion of a year-long effort to find out suitable deposits,'' he said.

Speaking on the occasion, Mr Modi said Gujarat was blessed with good lignite reserves. ''By joining hands with the NLC, which has over 50 years of operating mining-cum-power project, both the parties are entering into a win-win partnership.'' State government would provide all necessary facilities to set up the project on a fast track basis.

Wooing investors, Mr Modi said Gujarat was also an ideal destinaton for setting up imported coal-based power plants. The Centre had already initiated steps to set up 4,000 MW imported coal-based ulra mega power project at Mundra.

UNI GV VJ KP1842