Energy sector projects by Neyveli Lignite Corporation Limited in Neyveli

6114

Neyveli Lignite Corporation Limited

The oldest power plant in Neyveli, set up 50 years ago, using locally mined lignite as fuel, and having done great service, will now be phased out. This 600 MW unit is proposed to be replaced by a new plant, which will have 2 units of 500 MW capacity each. Estimated to cost Rs4,751 crore, this will be setup in the next three to four years. According to Surinder Mohan, Chairman and Managing Director of Neyveli Lignite Corp Ltd, orders have been already placed with Bharat Heavy Electricals Ltd (BHEL), at a cost of around Rs3,592 crore for boiler and turbine generators (BTG). If everything goes according to plan, this Neyveli New Thermal Power Project (NNTPP) with two 500 MW units will start supplying to the grid by 2019, if not earlier. Efforts should be made by BHEL to handle the boiler and Turbine generators (BTG) contract expeditiously so that there are no delays in execution. In the past, Tamil Nadu has always experienced power outages and power shut downs are common. Continuous power supply has become essential for the development of the State. It may be of interest to note, that in the recent past, two 4000 MW UMPP (Ultra Mega Power Projects) in Cheyyur (Tamil Nadu) and in Odisha have been discussed at great length and in fact, these have reached the bidding stage recently. The Association of Power Producers (APP) has drawn the attention of Power Minister, Piyush Goyal, to review the current bidding model. The APP has said that the design, build, finance, operate and transfer (DBFOT) is "unviable". It appears that even the Central Electricity Regulatory Commission (CERC) supports the view of the APP and has recommended that the build, own and operate (BOO) model would be more realistic and practical. So, until this issue is sorted out, both Odisha and Tamil Nadu's 4000 MW UMPPs may get delayed even before the bidding starts! This only means that in order to secure its supplies and its growing industrial needs, the Neyveli replacement project (NNTPS) mentioned above, needs top priority in execution.

INR 4751 Crore /-

Pre Project Activities Underway

Neyveli

Tamil Nadu

India

Energy