Neyveli Lignite gets cabinet nod for 1980 MW thermal power plant in UP

The Cabinet Committee on Economic Affairs (CCEA) has approved Neyveli Lignite Corporation's (NLC) proposal to set up a 1,980 megawatt (MW) thermal power plant in Uttar Pradesh (UP), CNBC-TV18 quoted chairman SK Acharya as saying.

Neyveli Uttar Pradesh Power Ltd (NUPPL) a joint venture of NLC and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), will set up the 1,980 MW Ghatampur Thermal Power Project (GTPC), the first unit (Unit I) of which is scheduled to be commissioned in around 52 months.

Unit II and III will be commissioned in 58 months and 64 months, respectively.

The project will involve total capital expenditure of around Rs17,000 crore and the part of the equity will be funded from NLC's internal accruals.

NLC is reported to be ready with all ground work for the project, including several contracts and works could begin very shortly.

Of the Rs17,300-crore capex, the equity part will be coming from NLC's internal accruals and as a 49 per cent from partner. The UP government is also putting in liquidity as per their share.

As per the power purchase agreement (PPA), the state will buy 75 per cent of its annual generation of around 14,000 million and for the rest 25 per cent, the company will either have to tie up with buyers or go for trading.

NLC claims to be running its existing plants at an average PLF of 85-86 per cent.

The Neyveli Lignite scrip rose 10 per cent on news of cabinet nod for 1980 MW UP power unit.