NLC India Limited posts yet another record performance in FY 2017-18 and Passes on benefits of lower tariff to consumers

Bhubaneswar: April 17: At the Corporate Headquarters of the NLC India Limited, one of India’s foremost Mining and Power Generation Companies, the Chairman and Managing Director, Dr. S.K.Acharya has reasons to smile. Under his stewardship FY 2017-18 has ended with new highs, setting new records in many areas, yet some of the benchmarks were achieved by lowering thresholds.

Further to the implementation of GST and withdrawal of other levies, NLCIL became the first PSU to promptly pass on a significant benefit-reduction in power tariff ranging from 45 paise per KWhr to 75 paise per KWhr, benefitting the DISCOMS it serves by around Rs.631 crores for FY 2017-18.

Technical expertise and efficiency in mining operations combined with prudent cost management has resulted in reduction in Lignite Transfer Pricing for Captive use, leading to lowering of power tariff by further 12 paise to 19 paise per KWhr w.e.f. 01.04.2018. Employee cost as a percentage of Turn Over and Total Cost has declined by 17.11% and 13.50% respectively over the last three years.

In terms of financial performance, NLCIL’s Sales for the nine months period ending 31.12.2017 increased by 2.34%, compared to the corresponding period in 2016-17, while total income increased by 2.99%.

Further NLCIL exceeded all targets set in its MoU for physical performance (OB removal, Lignite Mining and Power Generation). As for capacity addition in the year ahead, NLCIL has plans to commission a 1000 MW Lignite-based Power Plant by July 2018. Total Power Generating Capacity is set to be enhanced to 5331 MW by July 2018 and 6240 MW by March’2019, which would be more than double compared to capacity as on 31.03.2015, an unparalleled record in public sector history.

Green Energy, a key focus area at NLCIL, has got further boost with addition of 230 MW of Solar and 3 MW of wind power generation capacity         . On the anvil is commissioning of 400 MW solar by June 2018 and 709 MW by March’2019.

FY 2017-18 will also be known for a record number of highs since inception of NLCIL six decades ago. Highest tonnage of Lignite Production in Mine II at Neyvelli, an increase of 12.7% in Power Generation at Barsingsar compared to the previous year, 46.1% increase in Power Generation from TS II expansion and 41.4% increase in wind power generation.

Other significant achievements include 102.3% increase in Revenue from Power Trading, increase of 238.7% in Revenue from Raw Lignite and mineral sales, which is highest since 2014 and 29.78% increase in Revenue from Scrap disposal, the highest in last 5 years.