NLC India gains more than 3 per cent on ramping up coal production

On Wednesday, NLC India Ltd (NLCIL), which is a ‘Navratna’ PSU’s 20 MTPA Talabira II & III Open Cast Mine, Odisha, announced that the company has crossed 2 million tons production to date during its first full year of operation.

The company has charted plans to achieve the target of 6 MTPA from its original schedule of 4 MTPA during the current year. Owing to the high demand for coal, it is taking all efforts to augment the coal production of Talabira Mine up to 10 MTPA for the current year and up to 20 MTPA from next year onward.

This will lead to the availability of coal in the market and provide fuel security to end use plants. The coal produced is being transported to one of the end use plants, NLC Tamilnadu Power Limited’s 2 x 500 MW at Tuticorin, Tamilnadu, a subsidiary of NLCIL. The entire generated power is catering to the requirement of southern states bearing more than 40 per cent share to Tamilnadu.

The recent amendment to Mines and Minerals (Development and Regulation) Act on Mineral Concession Rules by the Ministry of Coal, Government of India on October 1, 2021, has given a nod to the mine for sale of excess coal after meeting the coal requirement of end use plant. In line with this, the permission from Ministry of Coal has been sought to sell the excess coal.

NLC India Limited is a Navratna government of India company in the fossil fuel mining sector in India and thermal power generation. On Wednesday, NLC India was trading at Rs 71.35 per share, which is 3.18 per cent up on BSE. The stock is trading close to its 52-week high price of Rs 73.9 per share.