NLC is a company registered on 14.11.1956. The mining operations were started by NLC on 20.05.1957. NLC has marched as a leading lignite mining and power company in India. It is one of the biggest opencast lignite mines operating company deploying continuous mining technology in Asia. Presently NLC has three opencast mines with an annual capacity of 24 million tones of lignite and 3 pithead Thermal Power Stations with 2490 MW capacity. NLC's growth is sustained and its contribution to India's social and economic development is significant. NLC is considered as nodal agency for lignite mining in India by Government of India. Lignite deposit in India occur in sub-surface deposits and as part of Tertiary formation through deposits of occurrence vary from 100 metres to depths 300 metres. But major lignite deposits in India are in the states of Tamil Nadu, Rajasthan, Gujarat, Jammu and Kashmir and Kerala. Exploration in identifying lignite occurrence in the above States is being carried out in various stages. About 87 percent of lignite reserves in the country are in Tamil Nadu. 19 Blocks have been identified in Tamil Nadu and Pondicherry of which Mine-I, Mine-II and Mine-IA are under operation.

Sl. No.
Name of Lignite Field
District
Area (Km2)
Total Geological Reserves (Million Tonnes)
Overburden Range (mts.)
Lignite Thickness Range (mts.)

1

Neyveli

Cuddalore

480

4150

45.150

2-30

2

Bahur

Mostly in Pondicherry and partly in Cuddalore

52

575

45-135

2-22

3

Jayamkondam

Tiruchirapalli

120

1168

65-160

2-21

4

Mannargudi & Vadaseri

Thiruvarur & Tanjavur

570

22726

160-450

2-87

5

Veeranam

Cuddalore

153

1491

180-290

2-18

Lignite Mines in Tamil Nadu

Neyveli is endowed with a proven existence of 4150 million tones of lignite in an area of 480 sq.km. Today Mine-I, Mine-II and Mine-IA are producing over 24 million tones per annum.

STATUS OF ADVANCE ACTION PROPOSALS SANCTIONED BY GOI

The status of the Advance Action proposals for the following projects approved by Ministry of Coal for incurring expenditure on preliminary activities are:

(i) Mine-II Expansion (10.5 MT to 15.0 MT per annum)

NLC has submitted a proposal to Government of India to expand the existing Mine II from 10.5 MTPA to 15.0 MTPA at a capital cost of Rs.2014.88 crores (Nov.2002 base). All statutory clearances have been obtained for the project. Approval of GOI is awaited. Advance action has been taken in respect of drilling of observatory wells, formation of approach road, site preparation for conveyor erection work, construction of SME erection site. Soil study has been taken up. Tenders have been floated for the purchase of SME equipments.

(ii) TPS-II Expansion (500 MW – 2 x 250 MW)

NLC has also submitted a proposal to Government of India to expand the existing Thermal Power Station-II from 1470 MW to 1970 MW at a capital cost of Rs.2082.27 crores (Nov.2002 base). It is proposed to adopt a latest more environment friendly technology for this project, viz. combined Fluidised Bed Combustion (CFBC) technology. All statutory clearances have been obtained for the pr006Fject, including techno-economic clearance from Central Electricity Authority. GOI sanction is awaited. Project consultant has been appointed and all other miscellaneous works are started.

(iii) Rajasthan Mine (2.1 MTPA) and Thermal Project (2x125 MW)

NLC has proposed to develop a Mine-cum-Power project at Barsingsar in Bikaner District of Rajasthan at a total capital cost of Rs.1708.32 crores (Nov.2002 base). An MoU has been signed in June 2002 between the Company, Government of Rajasthan and Ministry of Coal to start the activities for the project. All Statutory clearances have been obtained for these projects. Power Purchase Agreement is to be signed with Rajasthan Vidyut Prasaran Nigam Ltd. Government of India approval for the project is awaited.

(iv) Tuticorin Power Project (1000 MW)

NLC has also proposed to establish 1000 MW capacity power plant at Tuticorin in the State of Tamil Nadu, in Joint Venture with Tamil Nadu Electricity Board (TNEB), using Coal at the feed stock, at an estimated project cost of Rs.4000 crores. An MoU has been signed in this regard with TNEB for implementation of the above project. GOI has accorded approval for advance action for the preliminary activities.

(v) Orissa Power Project (2000 MW)

NLC has also proposed to establish a power plant in the State of Orissa, using Coal as the feed stock at an estimated cost of Rs.8000 crores. GOI has accorded approval for advance action plan for preliminary activities.