India’s first lignite-fired power plant proposed by Neyveli Corporation gets green nod

The project is unique as there is no other lignite-fired power plant in India.
A thermal power station at Neyveli | PTI
A thermal power station at Neyveli | PTI

CHENNAI: The ambitious project of public sector mining-cum-power company NLC India Ltd (formerly Neyveli Lignite Corporation) to set up 2x660 MW lignite-based supercritical thermal power plant in Cuddalore has been cleared by the Union Environment Ministry.

The project is unique as there is no other lignite-fired power plant in India.The project costing `8,733.49 crore is expected to generate around 10 million units of electricity per year, which will ease the growing energy deficit in Tamil Nadu. The ministry’s expert appraisal committee (EAC) recommended granting of environment clearance to the project at a meeting a few days ago.

The primary fuel for the proposed project is lignite which will be sourced from the NLC’s basket of mines, including Mine-III allocated by the Ministry of Coal. The lignite requirement has been assessed as 8.09 million tons and will be received and transported by suitable conveyor system to the project site.      

NLC officials said that as per the Central Electricity Authority (CEA) guidelines, the 1,320-MW power plant requires 990 acres, but the NLC has optimised the land requirement to 608 acres as the proposed project will share some common facilities, such as emergency ash pond and water reservoir, with the Thermal Power Station-II plant (7x210 MW & 2x250 MW) and the entire land required is already in its possession.

Environment friendly project’

“The land required for lignite transportation system, laying of pipeline, right of way transmission lines etc. is in possession of the NLC and there is no need for any land acquisition,” an official said. Compared to the existing units, the proposed project will be more environment-friendly and promises to achieve zero liquid discharge (ZLD). Besides, DeNOx technology, which is selective catalytic reduction technology, will be installed in the boiler to meet the latest NOx (Nitrogen oxides) emission norms, according to the NLC’s submission before EAC.

NLC is accused of multiple non-compliances in the existing power plant in Neyveli such as bottom ash, fugitive dust, poor engineering and biological measures to protect ash pond which led to lot of erosion etc. However, NLC officials say it has already obtained consent letter from cement manufactures like Ramco Cements, Ariyalur, Dalmia Bharat Limited, Dalmiapuram and India Cements, Ariyalur for off-take of the fly ash generated from the proposed project. Hence 100 per cent utilisation of fly ash was envisaged. Meanwhile, the EAC, as per the revised tariff policy notified by the Ministry of Power, has asked the NLC to explore the use of treated sewage water from the sewage treatment plant of the municipality/ local bodies/similar organisation located within 50-km radius of the proposed power project to minimise the water drawl from surface waterbodies.

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