NLC set to invest in 2,000 MW project

By OUR CORRESPONDENT

Chennai

May 27: Neyveli Lignite Corporation Ltd (NLC) will set up a 2,000-MW coal-based power plant in Orissa. "There was some delay in acquiring land, but we are solving it soon," said Mr S. Jayaraman, chairman and managing director of the company while announcing the results here.

The PSU will set up the power plant in a joint venture holding a majority stake of 51 per cent.

The company will also set up a mining project in Orissa in partnership with Hindalco and Mahanandi Coalfields.

He said ‘mini ratna’ firm would implement a coal-based 1,000 MW power plant at Tuticorin. A JV firm by NLC and Tamil Nadu Electricity Board would implement the project.

Mr Jayaraman said the company would earmark Rs 1,700 crore capital expenditure for different projects in the current year. "We have tied up with a consortium of banks for Rs 2,500. We may go for an additional loan of Rs 1,800 crore this year," he said.

The company revenue has grown by 41 per cent for the financial year 2007-07 at Rs 2,982 crore against the previous fiscal.