Information Document

Neyveli Lignite Corporation

Interview Preparation

All about NLC

• NLC India Limited (NLC) (formerly Neyveli Lignite Corporation Limited) is a 'Navratna'
government of India company in the fossil fuel mining sector in India and thermal
power generation.
• It annually produces about 30 million tonnes of Lignite from opencast mines
at Neyveli in the state of Tamil Nadu in southern India and at Barsingsar in Bikaner
district of Rajasthan state.
• The lignite is used at pithead thermal power stations of 3640 MW installed capacity to
produce electricity. Its joint venture has a 1000 MW thermal power station using coal.
• Lately, it has diversified into renewable energy production and installed 1404 MW
solar power plant to produce electricity from photovoltaic (PV) cells and 51 MW
electricity from windmills.
• It was incorporated in 1956 and was wholly owned by the government of India. A small
portion of its stock was sold to the public to list its shares on stock exchanges where
its shares are traded.
• It is under the administrative control of Ministry of Coal.
• NLCIL is a Navratna Government of India Enterprise.
• A pioneer in the energy sector, NLCIL operates four opencast lignite mines of a total
capacity of 30.6 million tonnes Per Annum (MTPA) at Neyveli and Barsingsar,
Rajasthan, Six lignite based pithead Thermal Power Stations with an aggregate capacity
of 3640 MW – at Neyveli and Barsingsar and a 1000 MW Coal based Thermal Power
Station at Thoothukudi, Tamil Nadu through its subsidiary company, NLC Tamil Nadu
Power Limited (NTPL), a joint venture between NLCIL and TANGEDCO (equity
participation in the ratio of 89:11).
• NLCIL recently commissioned a 1x500 MW unit at Neyveli which is also Asia's
largest lignite fired boiler.
• NLCIL has also forayed into renewable energy sector with commissioning of a 141 MW
Solar Photo Voltaic Power Plant including 1 MW Roof-top Project at Neyveli and a 51
MW Wind Energy Plant at Kazhuneerkulam Village of Tirunelveli district in Tamilnadu.
• The Company is also setting up 1209 MW Solar Power Projects at Tirunelveli,
Virudhunagar and Ramanathapuram districts of Tamil Nadu, of which, 300 MW have
been commissioned.
• NLC is aiming to achieve a total Renewable energy capacity of 4251 MW.
• Rakesh Kumar is CMD of NLC
 Information from NLC webpage
NLC India Ltd. is a pioneer in open-cast mining and Major Indian Non-State Player in
Lignite Mining and Power Generation Business. NLCI views its Business as an opportunity
to set up the mechanisms for sustainable socio-economic development of its operating
regions and also for contributing to the Nation Building Efforts. NLCI's business strategies
are closely linked to its Corporate Social Responsibility (CSR). NLCI's CSR is aimed at
Human Development through innovative strategies and measurable social impacts. A
Holistic Approach is adopted by NLCI for achieving Inclusive Growth in its operating
regions by means of formulating and implementing projects, programs and activities for
the benefit of neighborhoods in the focus areas of Rural Infrastructure, Water, Health,
Education and Capacity Building / Skill Development etc. with continued social impacts.
NLCI has been taking up various CSR projects / activities for the benefits of inhabitants of
neighboring village’s right from its inception and had adopted a full-fledged CSR policy
from the year 2009
The main activity of NLC India is Mining (Coal & Lignite) and Power Generation (Thermal
and Renewable Energy).
Mining

NLC India at present has four open cast lignite mines namely Mine I, Mine II, Mine IA and
Barsingsar Mine. The lignite mined out is used as fuel to the linked Pit head power stations.
Also raw lignite is being sold to small scale industries to use it as fuel in their production
activities.
Power Generation

NLC India has five pithead Thermal Power Stations with an aggregate capacity of 3140 MW. Further,
NLC India has installed 34 Wind Turbine Generators of capacity 1.50 MW each and also
commissioned 440 MW Solar Photo Voltaic Power plant in Neyveli, resulting in an overall power
generating capacity of 3731 MW (excl. JVs).

Categories of PSUs
Maharatna Public Sectors
• Three years with an average annual net profit of over ₹2,500 crore, OR Average annual
Net worth of ₹10,000 crore for 3 years, OR Average annual Turnover of ₹20,000 crore for
3 years (against Rs 25,000 crore prescribed earlier)
• ₹1,000 crore – ₹5,000 crore, or free to decide on investments up to 15% of their net
worth in a project
Navratna Public Sectors
• A score of 60 (out of 100), based on six parameters which include net profit, net worth,
total manpower cost, total cost of production, cost of services, PBDIT (Profit Before
Depreciation, Interest and Taxes), capital employed, etc.
• A company must first be a Miniratna and have 4 independent directors on its board
before it can be made a Navratna.
• up to ₹1,000 crore or 15% of their net worth on a single project or 30% of their net
worth in the whole year (not exceeding ₹1,000 crores).
Miniratna Public Sector
• Have made profits continuously for the last three years or earned a net profit of ₹30
crore or more in one of the three years
• up to ₹500 crore or equal to their net worth, whichever is lower.