Date:17/08/2008 URL: http://www.thehindu.com/2008/08/17/stories/2008081753430300.htm

Tamil Nadu

Preliminary work on lignite-based Jayamkondam power plant begins

A.V. Ragunathan

Centre has sanctioned 1000 MW coal-based power project at Tuticorin
It will be set up at a cost of Rs.4,909.54 cr. through NLC Tamil Nadu Power Ltd

NEYVELI: Preliminary works on the lignite-based power plant at Jayamkondam have begun, according to J.N. Prasannakumar, Chairman-cum-Managing Director of the Neyveli Lignite Corporation.

Mr. Prasannakumar was speaking at the Independence Day celebrations on NLC premises on Friday. He said a feasibility report was being prepared. Environmental studies and soil investigation on the Rs 9,800-crore project had been taken up.

The Jayamkondam block is estimated to have a reserve of 1,150 million tonnes of lignite. The NLC, permitted by the State government to take up the project, has drawn up an ambitious plan for a lignite mine with an annual capacity of 13.5 million tonnes and a power plant with two units of 800 MW each. Mr. Prasannakumar said the Centre had sanctioned the 1000 MW coal-based power project at Tuticorin to be set up at a cost of Rs.4,909.54 crore through the NLC Tamil Nadu Power Ltd, a special purpose vehicle. While the first 500 MW unit would be commissioned in March 2012, the second would go on stream in August 2012.

Mr. Prasannakumar said the Centre had sanctioned Rs.11.25 crore for preparatory works to replace the vintage Thermal Power Station-I in Neyveli that had served for more than four decades and had got its service life extended by 15 years.

After dismantling the plant, NLC would put up two units of 500 MW each. Under Mine-II expansion project, the overburden system was commissioned in March 2008 and for TPS-II expansion project, boiler drum of unit II was erected. The Barsingsar project was likely to be commissioned in December 2008.

Mr. Prasannakumar said NLC had attained an all-time record in lignite production of 215.86 lakh tonnes and power generation of 17,456 MU in 2007-08 despite many hurdles.

However, he said, the performance during the current financial year was not encouraging, and NLC was yet to achieve the annual action plant target. Lack of availability of land for mine movement was posing a challenge. He hoped to surmount the problem.