Neyveli Lignite to set up Rs7,500 crore lignite power project
17 August 2006
Neyveli Lignite will set up an integrated lignite mining and power project in Gujarat. The mine would have an initial capacity of 8 million tonnes per annum while the first phase of the power project would generate 1,000 MW.
In the second phase, the power generation capacity would be increased to 1,500 MW and the lignite mining capacity would go up to 12 million tonnes. Total investments in the project would be around Rs7,500 crore.
Neyveli Lignite has signed a MoU with the government of Gujarat for the project. The Gujarat government or state PSU companies would take a minority stake in the venture. Final shareholding pattern has not been decided, but Neyveli Lignite said it would hold between 74 per cent and 89 per cent in the venture.
The project would be financed through a combination of debt and equity in the ratio 70:30. Implementation is expected to take up to five years.
Neyveli Lignite currently operates a 24-million tonne lignite mine and a 2,500-MW power project in Tamil Nadu. The company is currently implementing integrated lignite mining and power projects in the states of Tamil Nadu and Rajasthan for a total generation capacity of 750 MW at a total cost of Rs5,560.
Neyveli Lignite is also in discussions to take up various projects in Tamil Nadu, Rajasthan, Madhya Pradesh and Orissa with a total generation capacity of 6,000 MW.