There has been a lapse on part of NLC in land acquisition, leading to lignite shortage: Tangedco

Tangedco finds NLCIL has lapsed in land acquisition, leading to lignite shortage at Neyveli Thermal Power Station-II. TN, Kerala, Karnataka, AP & Puducherry share power generated from the station. TANTRANSCO wrote to SRPC on frequent outage due to lignite conservation. Tangedco asked NLCIL to furnish status of land acquisition & details of existing stock. Discussions on for importing coal & blending with lignite. TN executed long-term PPAs for 7,170 MW, but peak availability only 5,900 MW.

Tamil Nadu Generation and Distribution Corporation (Tangedco) has said there has been a lapse on the part of NLC India Limited (NLCIL) in land acquisition, which has possibly led to lignite shortage at Neyveli Thermal Power Station-II.

The Neyveli Thermal Power Station-II has a capacity of 1,470 MW, consisting of 7 units of 210 MW each. The power generated from the station is shared by Tamil Nadu, Kerala, Karnataka and Andhra Pradesh, and the Union Territory of Puducherry.

Earlier, Tamil Nadu Transmission Corporation Limited (TANTRANSCO) had written to the Southern Regional Power Committee (SRPC) on the issue of experiencing frequent outage of Neyveli Thermal Station-II units, due to reasons like boiler tube leakage and lignite conservation, leading to shortage in availability and overloading.

The issues were discussed at the SRPC meetings and NLCIL told them that efforts were being taken to resolve the issues.

In a letter dated July 18 to SRPC, Tangedco pointed out some issues including those pertaining to NLCIL Station II and wanted it to be included as additional agenda item in the upcoming meeting.

“It is ascertained that the issue of land acquisition is mainly due to the improper planning of NLCIL. Having signed power purchase agreement for 25 years for all stations, there should have been a simultaneous plan for acquisition of mining land. Hence, there has been a critical lapse on the part of NLCIL,” the State power utility said. The NLCIL would do well to furnish the status of land acquisition, details of existing stock etc.

Further, parallel discussions were on for importing of coal and blending with lignite at a limited percentage. In this regard, NLCIL shall deliberate the issue in detail and keep the beneficiaries informed of any action that would have financial implication, it added.