Central Public Sector Undertaking NLC India Ltd (NLCIL) counts Tamil Nadu as its top customer. In an interview with The Hindu, M. Prasanna Kumar, its Chairman and Managing Director, shared his thoughts on the power situation and other issues
What is the current power generation capacity of NLCIL in Tamil Nadu and how much does it supply to the State power utility?
In Tamil Nadu, our installed power generation capacity is 4,390 MW of thermal projects and 1,411 MW of renewable energy projects. Being a Central Generating Station, our power plants supply power to the entire Southern Grid in accordance with the Union Ministry of Power’s allocation norms. A lion’s share of power from the NLCIL’s plants — about 50% of our generation — is supplied to Tamil Nadu. We cater to approximately 10% of the State’s needs.
In our upcoming supercritical thermal power project at Talabira in Odisha, Tamil Nadu has a major share of 62.5% or 1,500 MW of the total capacity. Another project at Neyveli Thermal Power Station II (second expansion) with an installed capacity of 1,320 MW envisages to supply 1,081.69 MW (81.9%) to Tamil Nadu.
The scheduled commissioning date for the projects are during the financial year 2029.
There have been issues surrounding lignite shortage, especially in Neyveli Thermal Power Station-II. How is the situation now? Have arrangements been made to ensure smooth power supply to Tamil Nadu in the upcoming summer period?
Yes, there were challenges in land acquisition for the mine projects. Subsequently, there was shortage of lignite, and power generation was hindered during the first two quarters of the current financial year. With the support of the State and Central governments, the blockade has been cleared and land acquisition has started.
Compensation and welfare schemes for families affected by the project are being implemented. Schemes have been devised for upskilling of the educated children of land-owners to create a promising future for them.
Lignite production will be ramped up when we have in possession the required quantum of land. Anticipating the peak requirement of power during summer, our units have been subject to annual maintenance and kept ready for performance. We expect to reach full production by this quarter (January-March) and seamlessly supply power during the ensuing summer period.
Do you have plans to import coal to blend it with lignite to tide over any fuel shortage?
NLCIL does not have any such plan as the properties of coal and lignite are different. Through the Centre’s intervention and the State government’s support, the fuel shortage has been sorted out.
Technically, blending coal with lignite and combusting in the boiler will be challenging, considering the design of the boiler and the chemical characteristics of imported coal and lignite. The chemical characteristics of imported coal are different in terms of calorific value, volatile matter and moisture content. Such fuels will be difficult to fire in lignite-based boilers. At present, we do not have plans to import lignite as sufficient quantities of fuel are available in Tamil Nadu itself.
What are your views on Tamil Nadu’s push towards green energy?
After a few years of a lull period, the power demand has improved, and continues to improve. With much optimism in the economy and the industry, the demand is set to grow in the coming years too.
Much success can be achieved through good proliferation of rooftop-distributed solar systems in the State. They do not need networks and require less investment. There are no transmission or distribution losses. Capacity addition through renewable energy sources have also increased. Each year, we intend to add around 50 GW. There has been a slight slowdown in thermal power generation due to challenges in funding, fuel availability and environmental clearance. However, it is felt that the balance between thermal and renewable power generation must be established for Grid safety. Actions are being taken to improve storage technology, gasification and green hydrogen, which will play a vital role.
