PM Modi to launch NLC India's 2,400 MW power project in Odisha

Prime Minister Narendra Modi is set to inaugurate the initial phase of a 3,200 MW pithead greenfield thermal power project in Odisha. This project is undertaken by NLC India Ltd, an integrated coal mining and power generation company. The Chairman and Managing Director, Prasanna Kumar Motupalli, revealed that the company plans a capital expenditure of approximately Rs 40,000 crore in the next fiscal year. Additionally, he mentioned that the lignite to methanol project is slated to be operational by 2027-28, with a daily production capacity of 1,200 tonnes. Motupalli further stated that the first phase of the project will consist of 2,400 MW (3x800 MW), and PM Modi will lay the foundation stone for this phase, while the second phase, an 800 MW plant, will be developed later.

The upcoming power project, utilizing Ultra Super Critical Technology, is slated for Jharsuguda District in Odisha. Motupalli conveyed that the initial phase is expected to become operational in 2028-29. The combined expenditure for both phases is projected to exceed Rs 35,000 crore, with the first phase accounting for approximately Rs 27,200 crore. In terms of financing, a combination of debt, internal accruals, and funds generated from asset monetization will be utilized. To raise around Rs 5,000 crore, NLC India plans to transfer about 1.4 GW of renewable power capacity to its renewable energy subsidiary. When asked about the land requirements for the Odisha project, Motupalli mentioned that approximately 1,600 acres are needed, of which 600 acres have been acquired, and the company currently possesses over 300 acres.

The 3,200 MW project is set to become the largest power project under the Ministry of Coal, as stated by Motupalli. He outlined that the power generated in the initial phase will be distributed to various regions, including Tamil Nadu (1,500 MW), Odisha (400 MW), Kerala (400 MW), and Puducherry (100 MW). The allocation for the second phase will include 400 MW for Odisha, with the remainder to be determined by the Ministry of Coal. NLC India has awarded an engineering, procurement, and construction (EPC) contract worth over Rs 15,000 crore to Bharat Heavy Electricals Ltd (BHEL) for the 2,400 MW power project. The coal linkage for this project is sourced from the 20 MTPA Talabira II & III OCP mines of NLC India, operational since 2020 in Jharsuguda and Sambalpur districts of Odisha.