Neyveli Lignite Corporation (NLC) is aiming to add 1500 MW of capacity to its power generation basket by March 2014. With its 500 MW TPS-II Expansion project and 1000 MW Tuticorin thermal power plant in advanced stages, the utility is confident of achieving the target.

In a latest review meeting, Neyveli Lignite informed the coal ministry that BHEL, the main plant package contractor, has committed that the commercial operation date for the first unit of TPS-II Expansion would be attained in December 2013 and the second unit in January 2014. BHEL completed the re-design part of fluidized bed heat exchange and work commenced from April 2013. The units are progressing at a good pace and as per the status of the works, the project is likely to be commissioned as per the schedule stated by BHEL.

Neyveli Lignite’s TPS-II Expansion includes development of two units of 250 MW each. The project was approved at a total cost of Rs. 3027.59 Crores. The original date of Completion for Unit I was June 2012 and March 2013 for Unit-II. Cumulative Expenditure of Rs.2700.85 Crores was made up till April 2013.

The Tuticorin project is being implemented as Joint Venture with Tamil Nadu Electricity Board through a JV Company called NLC Tamil Nadu Power Limited. Neyveli Lignite informed the coal ministry that considering the present status at site, it is anticipated that Unit-I will be commissioned by December 2013 and Unit-II by March 2014, with an overall delay of 19 months. The first unit of the project was originally scheduled to be completed by March 2012 and the second unit by August 2012.

Neyveli Lignite informed that the main reasons for delay were inadequate mobilization of resources like Manpower and slow progress of civil and erection works by BHEL. Neyveli Lignite mentioned that the projects executed by BHEL in south India had been delayed in several cases. The Tuticorin project consists of two units of 500 MW each. The project was approved at a total cost of Rs. 4909.54 Crore. Cumulative expenditure of Rs.4204.07 Crore was made till April 2013.

Though the projects are progressing at good pace, sources in the utility have mentioned that its is important that BHEL adheres to all deliverables for the projects to be commissioned as per this schedule. Any lapse on part of BHEL, may derail the project again, they stated.

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