Cuddalore: NLC India Limited (NLCIL) has proposed several projects to generate 5,300MW power across Tamil Nadu to compensate shelving of 4,000MW Sirkali power project. The company has been under fire for shelving the Sirkali project and deciding to establish onsite thermal power station near the Talabira mines in Odisha.
The company proposes one more 800MW unit at the NLC India Limited-Tamil Nadu power limited (NTPL), a subsidiary of NLCIL, at Tuticorin by using the excess coal available at Talibara mines in Odisha. The company also proposes to establish a 450MW windmill project at various places in the state for Tamil Nadu power generation and distribution corporation (Tangedco).
The company has already announced the expansion of thermal power station-II at Neyveli with four 660MW units in two stages to generate 2,640MW power. Similarly, the company has announced setting up of a 130MW solar power plant at Neyveli, solar power plants at various places in the state to generate 500MW power besides setting up solar power projects for Tamil Nadu power generation and distribution corporation (Tangedco) to generate 709MW power. Wind power projects for Tangedco to generate 50MW power in various parts of the state have also been announced.
NLCIL has planned to set up two lignite mines each with a capacity of mining 11.5 million tonnes per annum at Neyveli mine II, and Palayamkottai and south of Vellar. “The cost of mines and 5,300MW power projects will mean that NLCIL will be investing almost double the amount when compared to the cost of Sirkali project, which will fetch sizeable employment,” said a statement from the company.
The company decided to shelve Sirkali project after finding that the cost of generation will overrun the rate fixed in the power purchase agreement signed with the southern states.
“The coal from mines was to be transported by road to the nearest railway head and from there to Sirkali in Nagapattinam district by waterway for which a new harbour was to be established in the town for unloading coal. All these infrastructures will invariably require huge funds. Moreover, the entire project was envisaged at a time when a demand for power existed and the cost of power generating then was high,” said the statement.
NLCIL decided to establish onsite thermal power station at Talabina mines as the project was found to be more viable instead of transporting the coal down south. “The cost of power generation for the proposed power stations including the charges for transmitting the power to southern states through national grid will be well within the limit and the project will be feasible. Hence NLCIL proposes to establish a thermal power project with six 660MW units at Talibara, Odisha in two stages,” said the release.