NLC India Limited : Powering a sustainable future

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By Prasanna Kumar Motupalli | Chairman & Managing Director | NLC India Limited

For over six glorious decades, NLC India Ltd has been a forerunner amongst the Public Sector Enterprises in the country, both in the Mining and Energy sectors, contributing to a lion’s share in lignite production and a significant share in Thermal and Renewable Energy Generation. NLCIL is a Navratna Government of India Enterprise, under the administrative control of the Ministry of Coal. The company has its footprints in the states of Tamil Nadu, Rajasthan, Uttar Pradesh, Odisha, Jharkhand, and Andaman & Nicobar Islands.

The Company is also operating 4 Lignite based pit-head Thermal Power Stations with an aggregate capacity of 3390 Mega Watt (MW) at Neyveli and 250 MW Lignite based Thermal Power Station (BTPS) at Barsingsar, Rajasthan. 1000 MW Coal based Thermal Power Station is also in operation at Thoothukudi, Tamil Nadu through its subsidiary company, NLC Tamil Nadu Power Limited (NTPL), a Joint Venture between NLCIL and TANGEDCO. A super-critical coal-fired power project of 1980 MW is in an advanced stage of its completion at Ghatampur in the Kanpur district of Uttar Pradesh, India. Unit-1 has already beensuccessfully synchronised with Grid on November, 4, 2023. This project is being developed by Neyveli Uttar Pradesh Power Limited (NUPPL), which is a joint venture between Neyveli Lignite Corporation Limited (NLCIL) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL).

NLCIL has also forayed into Renewable Energy sector. Presently, the Company is operating 1380 MW of Solar Power Plants in various southern Districts of Tamil Nadu, in Neyveli Township and in Andaman & Nicobar Islands, and 51 MW Wind Power Plant in Tirunelveli district of Tamil Nadu. Total Power Generation achieved in FY 2022-23 is 30.08 BU including all time highest ever green power generation of 2.19 BU. The previous achievement of 29.20 BU in FY 2021-22, was also the highest ever and now witnessed a growth of 3 % in the total power generation.

NLCIL operates 3 opencast Lignite Mines with a total installed capacity of 28 million Tonnes Per Annum (MTPA) at Neyveli, one opencast Lignite Mine at Barsingsar in Rajasthan with an installed capacity of 2.10 MTPA, and an open-cast coal mine at Talabira in Odisha with an installed capacity of 20 MTPA. NLCIL has been allotted Pachwara South Coal Block of 9 MTPA capacity and North Dhadu (western part) Coal Block of peak rated capacity of 3 MTPA in Jharkhand. All time highest ever Mining Production is 33.5 MT including all time high Coal production of 10 MT achieved during the year 2022-23.

NLC India Limited has incorporated a new wholly-owned Subsidiary “NLC India Green Energy Limited” (NIGEL). Currently, projects to the tune of 2 GW of Renewable Energy are under implementation, including 600 MW solar power project in Gujarat and 810 MW Solar Photovoltaic Power Project in Rajasthan. Already, NLCIL has incorporated a wholly-owned subsidiary NLC India Renewables Limited (NIRL) for Asset monetization.

NLCIL is a pioneer in mine reclamation and Environmental Protection, converting the reclaimed land into green hubs, with the water bodies, and maintaining them. Plans are also in place to take up solar projects on such reclaimed land. Such a project will be the first of its kind in the country.

As a socially responsible company, NLCIL has been carrying out development works in the surrounding villages, right from its inception, focusing on the socio-economic development of the operating regions for achieving inclusive growth.

CSR Spotlight- Incredible success stories:

  1. NLCIL supports over 5000 students in its schools annually by providing uniforms, education kits, and nutritious breakfast with network of 9 schools including 2 elementary schools, 2 middle schools, 3 highersecondary schools and 3 senior secondary schools.  Since 2014-15, the company has enhanced educational facilities in Government Schools by constructing classrooms, toilet blocks, science labs, computer centers, libraries, and sports facilities in operational villages. Many students secured top ranks in state entrance examinations and coveted spots in premier educational institutions in India.
  • NLC India Limited, under its Project Jal Paryapt, desilted and rejuvenated community water bodies and lakes in Cuddalore district of Tamil Nadu that had not been desilted for almost 50 to 100 years. The impacts of the project are improvement in groundwater level in the surroundings of de-silted lakes/ponds, improvement Livestock numbers, pisciculture and aquaculture in the region also improved. Total number of beneficiaries are around 4 Lakh rural people and Total number of community water bodies de-silted as on date are 43 Nos.
  • Rehabilitation for Special Needs: The Sneha Opportunity School (SOS), a key CSR initiative, has been rehabilitating mentally challenged children since April 1987. It focuses on skill development to make them self-reliant and productive, providing day care, education, and vocational training to 70 children with various impairments.
  • Strengthened infrastructure at Primary Health Centers to provide free health check-ups, including body index ratio, blood pressure, blood sugar tests, and eye screenings for underserved villages. Provided free medicines and nutrition supplements to HIV-affected, handicapped, and mentally retarded children. Installed permanent bore wells for schools and hospitals.
  • Dialysis Center: Established a Kidney Dialysis facility with 13 machines at District Govt. Hospital in Cuddalore, Tamil Nadu, with a budget of Rs. 2.25 Cr, serving around 50 patients daily.
  • Medical Oxygen Plants: Installed 17 Oxygen generation plants worth Rs.10 Crore at Government Hospitals in Tamil Nadu, Rajasthan, and Karnataka to support the fight against COVID-19.
  • Railway Station Toilets: Constructed prefabricated toilets with separate facilities for men, women, and Divyangjans at 200 Railway Stations in Tamil Nadu, with a budget of Rs. 42.55 Crore, in collaboration with M/s. RITES Ltd.
  • Swachh Vidyalaya Abhiyan (SVA): NLCIL participated in the nationwide Swachch Bharath – Swachch Vidyalaya campaign by constructing 1275 toilet blocks in Tamil Nadu and Rajasthan. These facilities were built in 567 schools, with an average cost of around Rs. 3.00 lakhs per toilet block, totalling Rs. 36.72 Cr under CSR.
  • Empowering Women: NLC India Ltd trained 1200 underprivileged women in Dharwad District, Karnataka, on dress designing and provided sewing machines during FY 2022-23. This initiative empowers women by enhancing their skills and income-generating potential.
  1. Initiatives in Aspirational Districts in Tamil Nadu, Rajasthan and Odissa under CSR:
  • NLC India Limited implementing various CSR activities in aspirational Districts.
    • Toilet Blocks: Constructed toilet blocks in 24 Govt. schools at a cost of Rs.120.00 Lakh under Swatch Vidyalaya Abhiyan.
    • Mini Science Centres: Established Mini Science Centres in 11 Govt. Schools for Rs. 46.23 Lakh.
    • School Infrastructure: Improved infrastructure by providing paving and constructing a dias with roofing for Govt. Hr. Sec. School in Reddiapatti Village, Virudhunagar District (Rs. 14.35 Lakh) and building a compound wall for Govt. High School in K. Chettikulam Village, Virudhunagar District (Rs. 13.15 Lakh).
    • Digital Access: Supported digital access by providing computers with printers & scanners to establish a common service center in Ramanathapuram District (Rs. 3.26 Lakhs).
    • Rajasthan Cleanup: Organized a special cleanup campaign titled “United India for Swachhata” in Ramdevra, Jaisalmer and Jaisalmer Fort, Jaisalmer.
    • Solar Power: Installed a 25 KW off-grid solar plant in Ramdevra, Jaisalmer for Rs. 24 Lakh.
    • Waste Management: Provided 140 pole-mounted twin dustbins in Ramdevra, Jaisalmer. Rajasthan
    • Odisha Hostel: Contributed Rs. 87 Lakh for the construction of a hostel building to accommodate tribal students of Saraswathi Vidyamandir in Balimela, Malkangiri and Odisha.

Spreading our Wings:

Lignite to Methanol project:

NLCIL is establishing a lignite-to-methanol project, which is at tendering stage. The process involves converting lignite into syn-gas first and then converting that into methanol. Of all gasification projects in the country, this is at the top of the table. Once this is done, NLCIL be able to convert two metric tons of lignite into methanol regularly.

Green Hydrogen Project:

NLCIL is aggressively entering into the Green Hydrogen economy, which is the need of the hour. NLCIL is in the process of procuring electrolysers for the pilot project. Once that is completed, we will be having a project using solar power of 4 MW capacity for the generation of green hydrogen and subsequent uses. As a power generating company, NLC already have experience of hydrogen generation by conventional means in small capacity for our power plants generator cooling.

Over Burden to M-Sand project:

NLC has awarded a project for the conversion of the overburden into manufactured sand, which will cater to the requirements of the construction industry. This helps the environment and the society.  A Bhoomi Puja for the proposed environment friendly OB to M-Sand Plant at Mine-IA, Neyveli was performed on 12.12.2023.

Pumped storage Hydro projects:

As per our corporate plan, NLC has plans to enter in Pumped storage hydel projects, as energy storage solutions to achieve our objective of clean and green energy. NLCIL India will explore opportunities in Pumped storage in various states as to achieve renewable targets of 6 GW by 2030.

Electrical Mobility sector:

NLC India is interested to participate in all types of initiatives that encompass battery vehicles and energy storage across the country. NLCIL is the pioneer in the energy storage system. The first energy storage system of grid scale was established in the Andaman for 8-megawatt hours and is successfully running. So, with that experience,
we would love to be a participant in the energy storage initiatives announced by various governments.

Bio-Mass Co-firing:

In a step towards sustainability, NLCIL has started bio-mass co-firing in its coal based thermal power station NLC Tamilnadu Power Limited (NTPL) at Tuticorin on 5th December 2023. The stubble waste which would have been burnt without any usage is being pelletized and blended with coal for combustion in thermal power station. This step is set to reduce the coal consumption partially and utilizes the waste bio-mass in a useful means.

Net-zero targets and commitments:

Net Zero targets are being declared by companies who are basically energy consumers. As we are Energy generators our approach towards Net Zero targets will be entirely different. With Renewable Energy Generation targets through RPO and RGO are being implemented this itself will guide our pathway to have our trajectory towards Green energy targets. In the process of Just Transition, care need to be taken in ensuring right mix of Renewable energy and the conventional energy generation mix. There will be certain hard to abate sectors in the Net Zero transition, those sectors may take little larger duration for onboarding to the net zero targets, until a viable alternative is identified and implemented.

National Electricity Plan Volume I projects 52% of the electricity being supplied by conventional sources during 2030, which depicts that coal/lignite is set to play a major role since then also. Currently, we are taking care in all our process to be sustainable and embrace the Just Transition in a most smooth manner.  We see a large opportunity awaiting in Net Zero Transition and our plan is to capitalize that. We are working on the Net Zero Targets and is yet to be finalized. However, every care is being taken in ensuring sustainability in all our current actions. Because only that will help in enabling a smooth and successful adoption of Net Zero Target.

Path to achieve target of 17,171MW capacity by 2030: 

NLCIL is developing a 600 MW solar power project in the second phase of Gujarat State Electricity Corporation’s (GSECL) solar park located in Khavda, Gujarat. NLC India bagged 810 MW grid-connected solar photovoltaic project in Rajasthan. 

NLC India has entered into an agreement with Rajasthan Urja Vikas Nigam (RUVNL) for supplying 300 MW of solar power under the CPSU scheme. NLCIL has awarded Letter of Award (LoA) to TATA Power for setting up a 300 megawatt (MW) Domestic Content Requirement (DCR) based EPC project for NLC India (NLCIL). SDO has been appointed for establishing 200 MW Solar project on Pan India basis under CPSU Scheme.

NLC India entered into a joint venture with Assam Power Development Co. Ltd for green power projects.  NLCIL is in discussion with Odisha, Telangana, Andhra Pradesh and Karnataka to install solar power stations.

The recent COP-28 commitment seeks tripling global RE capacity to 11,000 GW by 2030 and doubling the Energy Efficiency improvement from 2% to 4% per annum to address the climate issues. NLCIL sees a great opportunity from the COP Declaration and realign its RE Capacity target for 2030. NLCIL intends to be a responsible power generator in the country through a just and balanced approach in its power generation capacity addition.

We see a very prosperous future in the power sector domain in the country which will benefit us in the years to come.

(Shilpa Bichitra | Special Edition | 2023)