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NLC plans 1,500 MW power plant in Gujarat

Friday, 26 May 2006
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Neyveli Lignite Corporation is planning to set up a 1,500 MW lignite-based power plant in South Gujarat in association with Gujarat Industries Power Co. and other state government-owned entities. The project will entail an investment of Rs.7,500 crore including the cost of developing lignite mines.

A draft memorandum of understanding has been prepared and is expected to be signed soon. NLC is likely to hold over 70 per cent stake in the project. The project will be financed through debt-equity ratio of 70:30.

The Gujarat government had planned to set up two mega lignite-based power units of 1,000 MW each, for which the government had received EoIs from companies like Aditya Birla Group, Adanis, Essar, Torrent and Nirma. This plan might be reviewed in light of NLC's proposal.

ProjectsToday adds: Early indications of NLC proposing a power plant in Gujarat, the first outside its home state Tamil Nadu, were first available in September 2005. The project scope has, however, undergone progressive changes.

Also See:

NLC project in Gujarat: MoU by January 2006 (07-Dec-05)

Neyveli Lignite Corporation: Review of Recent Projects (Special feature by ProjectsToday, Jan-06)

 

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