CHENNAI: An internal vigilance inquiry has flagged illegal excavation and transportation of ash and red sand from legacy ash ponds at NLC India Ltd (NLCIL)’s Neyveli thermal power plant complex.
A vigilance memorandum dated February 1, 2025, accessed by TNIE, shows that the inquiry cited “systemic lapses”. It said the lapses allowed contractors to extract material from the Thermal Power Station-II (TPS-II) Stage-I ash pond beyond permissible limits, with misuse of gate-pass approvals enabling continued movement of truckloads of ash and red sand.
Ash generated from NLCIL’s thermal units is typically sold to agencies through e-auction. On May 30, 2023, a pond-ash sale order was issued to agencies for 10 lakh tonnes at Rs 1 per tonne, valid until May 20, 2024. The contractor sought an extension to December 30, 2024, but the arrangement was abruptly closed on December 22, 2024.
During a site inspection, vigilance officials found excavation had gone beyond legacy ash into the pond’s base layer and inner bunds. The note said sustained removal of red sand appeared to have taken place “for a long time”, with visible excavation marks across multiple locations. Red sand mining is prohibited, sources said.
Field staff maintained that only legacy ash was being lifted. However, records reviewed by the inquiry showed a mismatch between declared stock and actual removals.
The e-auction contract expired on December 22, 2024. Yet on January 2, 2025, 10 days after expiry and without a duly approved extension, the vigilance team recorded loaded trucks exiting the pond and crossing the Ammerri check-post with valid gate passes.
Approvals for post-closure movement were issued only at the unit-head level rather than through statutory channels, the memo noted. It also observed that a fresh auction should have been conducted instead of extending the contract.
Recommending an overhaul of ash-management practices, the department urged NLCIL to frame a formal ash-disposal policy. It suggested curbing off-site transport, increasing the use of dry fly-ash systems, closing abandoned ash ponds, routing ash-lifting through a single centre, and strengthening supervision.
The memo calls for disciplinary action against officials involved in gate-pass lapses and unauthorised post-contract movements, and a formal warning to the then nodal officer for fly-ash management for irregularities in contract closure.
The vigilance division had sought an Action Taken Report by February 15, 2025. But details are still awaited. When contacted, a spokesperson of NLCIL told TNIE that they “cannot offer any comments at this stage” since the matter is sub judice.