Heavy rains hit min ing, power generation at NLC

Torrential rains at the Cuddalore-Neyveli region have affected mining activities at Neyveli Lignite Corporation Ltd, resulting in lower power generation.

The Cuddalore-Neyveli region has been experiencing excessive rainfall since 25 November, with the highest rainfall of 207.0 mm recorded on 26 November, the company said in a filing with the Bombay Stock Exchange.

Neyveli Lignite, being open cast mines, the excessive rainfall has caused water logging affected both mining activities and power generation at all linked power stations. Pumping out of excess water from the mines is in progress and normalcy in mining operation and power generation is expected to be restored shortly, the company said.

This is not an unusual occurrence as this occurs usually during north-east monsoon between October and December every year, it added.  

Meanwhile, the company said it was finding it difficult to supply lignite at fixed price due to high stripping ratio and ground water control.

NLC sells lignite in excess of its internal consumption requirements of power plants, A R Ansari, chairman and managing director of Neyveli Lignite Corporation said on Tuesday.