NLC India unveils ambitious Rs 82,700 cr expansion plan for RE, Green Tech

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NLC India unveils ambitious Rs 82,700 cr expansion plan for RE, Green Tech

NLC India unveils ambitious Rs 82,700 cr expansion plan for RE, Green Tech

Industry News
Oct 23,23

M Prasanna Kumar, Chairman & Managing Director (CMD), shared these ambitious plans highlighting the company's focus on both conventional sectors like coal and lignite mining and innovative fields like green hydrogen production.

NLC India unveils ambitious Rs 82,700 cr expansion plan for RE, Green Tech

NLC India, formerly known as Neyveli Lignite, is embarking on a substantial expansion initiative encompassing thermal and renewable power, battery storage, and coal gasification. M Prasanna Kumar, Chairman & Managing Director (CMD), shared these ambitious plans with FE, highlighting the company's focus on both conventional sectors like coal and lignite mining and innovative fields like green hydrogen production.

Anticipating a significant leap, the company is eyeing the commencement of green hydrogen generation in the upcoming fiscal year. Additionally, plans are underway to operationalise the coal gasification unit by FY27. These projects require substantial investments, with an estimated total of Rs 82,700 crores. Notably, Rs 22,000 crores is allocated for the renewable energy sector, signalling a robust commitment to green initiatives.

In the financial year 2024-25, NLC India aims to establish over 1 gigawatt (GW) of renewable energy capacities in Rajasthan and Gujarat. These ventures form part of an ambitious strategy to achieve a formidable 6 GW renewable energy capacity goal by 2030. Simultaneously, the company plans to bolster its thermal power plants by adding 11 GW capacity within the same timeframe.

Presently, NLC India is actively engaged in augmenting its renewable energy portfolio. Efforts are underway to add 100 MW of renewable energy capacity in Rajasthan, with an additional 10 MW capacity already installed in Neyveli. The company is poised to expand significantly, aiming to add more than 1,000 MW capacity in both Rajasthan and Gujarat in the next fiscal year. Floating solar projects around Neyveli and other powerhouses are also on the horizon, further diversifying the renewable energy initiatives.

Additionally, NLC India is collaborating with the government of Uttar Pradesh to add 1.5 GW of renewable energy capacity in Neyveli, Talabira, and Ghatampur under the bundling scheme. This strategic partnership aligns with the objective of providing uninterrupted power supply through the combined sale of renewable energy and thermal power.

Amidst these ambitious plans, NLC India is keen on expanding its lignite and coal mining capacity to 84 million metric tonnes, a significant increase from the current 50 million metric tonnes. The company is making strides in coal production, particularly in the advanced Pachhwara coal block, where a production target of 9 million metric tonnes (lignite and coal capacity) is expected to be achieved by March next year.

NLC India is also pioneering efforts in green technologies, evident in its 10 MW solar power station in the Neyveli area, of which 4 MW is dedicated to green hydrogen-based power. Furthermore, the company is venturing into battery storage, having signed a Memorandum of Understanding with the government in this domain. The feasibility report for this project is set to conclude within the current financial year, indicating the company's proactive stance in adopting cutting-edge technologies.

With the Gathampur power station gearing up for operations, NLC India anticipates a boost in profits. In the previous fiscal year, the company reported a standalone net profit of Rs 1,250 crores, with a consolidated profit reaching Rs 1,400 crores. This surge in profitability reflects the company's strategic investments and forward-thinking approach, positioning NLC India as a significant player in the renewable energy and sustainable technology sectors.

Source: The Financial Express