NLCIL Entrusts BHEL with 2400 MW Thermal Power Project in Odisha

Thermal-Power-Project-NLCIL
Image Credits: nlcindia.in

NLC India Ltd, a Navratna Company operating under the Ministry of Coal, has recently granted the Engineering, Procurement, and Construction (EPC) contract to Bharat Heavy Electricals Limited (BHEL) for the establishment of a cutting-edge Pit Head Green Field Thermal Power Project. This venture incorporates a robust capacity of 2,400 MW, structured in three stages of 800 MW each, and is strategically located in the Jharsuguda District of Odisha. The project, set to incorporate Ultra Super Critical Technology, marks a pivotal milestone in the nation’s pursuit of efficient and sustainable energy solutions.

NLC India Limited (NLCIL), one of the leading players in India’s energy sector, has been a key contributor for over six decades. Established on November 14, 1956, under the Ministry of Coal, NLCIL plays a significant role in lignite production and thermal and renewable energy generation. Operating across states like Tamil Nadu, Rajasthan, Uttar Pradesh, Odisha, Jharkhand, Gujarat, and the Andaman & Nicobar Islands, NLCIL is a major player with opencast lignite mines, totaling 28 MTPA capacity at Neyveli, along with mines in Rajasthan and Odisha.

NLCIL manages four lignite-based thermal power stations totaling 3,390 MW, a 250 MW power station in Rajasthan, and a 1,000 MW coal-based power station in Tamil Nadu through its subsidiary NTPL. Venturing into renewables, NLCIL operates 1,380 MW of solar power plants and a 51 MW wind power plant, making it the first CPSE to exceed 1 GW in solar power generation.

With an aim to achieve 6,031 MW of renewable energy capacity by 2030 and aspirations to become a 17,171 MW company by 2030, NLCIL is actively involved in strategic projects and collaborations, like the 3×660 MW coal-based thermal power station in Uttar Pradesh. The company has secured coal mine projects in Odisha and Jharkhand, with the Pachwara South Coal Block expected to be commissioned by 2024-25.

NLCIL’s vision extends to sustainability and social responsibility, evident in its membership in the International Solar Alliance. The establishment of subsidiaries like “NLC India Renewables Limited” and “NLC India Green Energy Limited” reflects its contributions to future renewable energy projects. As a pioneer in the public sector, NLCIL’s contributions to socio-economic development, sustainable growth, and fostering a cleaner energy future for India remain integral to its legacy.

The entire power output of 2,400 MW has already been allocated to the States of Tamil Nadu, Odisha, Kerala, and Puducherry, with Power Purchase Agreements (PPAs) having been meticulously executed to formalize these arrangements. The competitive tender process conducted under the International Competitive Bidding (ICB) route culminated in the selection of BHEL for the comprehensive scope of the project, encompassing engineering, manufacturing, supply, erection, and commissioning of essential equipment. Notable components include boilers, turbines, generators, balance of plants, Flue Gas Desulfurization (FGD) systems, and Selective Catalytic Reduction (SCR) units.

This thermal power project aligns with the national vision for environmentally conscious initiatives, featuring the integration of Ultra Super Critical Technology to optimize efficiency. Coal linkage for the project is secured from the Talabira II & III mines, collectively producing 20 million tonnes per annum (MTPA) under NLCIL’s operation since 2020 in the Jharsuguda and Sambalpur Districts of Odisha. Water requirements for the project will be sourced from the Hirakud Reservoir, while the power generated will be efficiently evacuated through the Inter-State Transmission System (ISTS) and the State Transmission Utility (STU) Network.

A highlight of this venture is its commitment to environmental stewardship, evident in the inclusion of state-of-the-art pollution control equipment such as FGD and SCR systems. In adherence to the Ministry of Environment, Forest and Climate Change (MoEF) guidelines, the project emphasizes sustainability by integrating co-firing capabilities for biomass in its boiler design. This aligns seamlessly with the Ministry of Power guidelines and includes dedicated systems for the handling of biomass.

The anticipated timeline for the commissioning of the first unit of this expansive thermal power project is set during the financial year 2028-29. Due to its strategic positioning as a Pit Head Thermal Project, it is expected to achieve a competitive variable cost structure, enabling NLC India to generate and provide low-cost power to its designated beneficiaries. This approach not only ensures economic viability but also contributes significantly to the nation’s energy landscape, reinforcing its aim to make affordable, reliable, and sustainable power generation.