NLC India Ltd. will have the option to sell surplus coal from its Talabira mines in Odisha after expanding capacity by more than half.
The state-run miner targets a rated production capacity of 20 million tonnes per annum by FY25 from 12 MTPA at present. It is an open cast captive mine attached to the 3,200 MW coal-based pit head power plant as well as 2x500 MW power plant of NTPL Tuticorin, a joint venture company of NLC India in Tamil Nadu.
With a proven reserve of 554 million tonnes, the mine will be ramped up to 20 MTPA by FY25 and can even produce 30-40 MTPA depending on India's demand for coal to meet power shortages and other priority sectors like steel, Franklin Jayakumar, executive director and project head of NLC India's Talabira II and III Open Cast Mines, told BQ Prime
“We have the requisite ability and the tools to increase the production depending on the demand however, the biggest challenge as of now is the procurement and supply bottlenecks in terms of railway siding and narrow road lanes,” Jayakumar said.
Franklin Jayakumar, Executive Director and Project Head, NLC India's Talabira Coal Mines, Odisha
(Source: Radhakisan Raswe/BQ Prime)
The company is planning to complete the railway siding--a low-speed track running alongside the main line--of around 8 km connecting to the nearest railway station in the next one year that would allow them to transport coal to the Paradip port from where it can be sent to the Tuticorin power plant. While the railway siding, being built under the PM-Gati Shakti initiative, endeavours to offset carbon dioxide emission, it will also facilitate evacuating the coal produced from the mine to other suppliers through multi-modal connectivity.
As of now, NLC has entered into a swapping agreement with NTPC that supplies around 2.6 MTPA of coal it sources from Mahanadi Coal Fields, while NLC supplies the coal to NTPC Lara as part of the swap agreement as approved by the Ministry of Coal, governing significant aspects such as cost effectiveness in logistics, public interest and optimum utilisation of coal block.
Around 11.5 MTPA of the coal produced from the mines is allocated for the Talabira Power Project (Phase-1 of the pit head Talabira power project), while 5 million tonne is for the Tuticorin Power Project, Jayakumar said, adding the remainder can be sold in the market through e-auction route.
According to Jayakumar, the company has been allowed to sell up to 75% of the coal produced from the mine in the market through e-auction route till FY26 to avoid idling of the mines especially when the Talabira power project will get commissioned by 2028. “Government thought it prudent to keep the coal fields producing at optimum capacity when demand for power and coal has risen exponentially,” he said.
Adani Enterprises Ltd. is the mine developer and operator for the Talabira II & III coal block. Apart from operations of the mine, the developer-cum-operator helps in land acquisition, facilitation of permits and clearances, mine planning and design, feasibility studies, pit optimisation, and resource evaluation, apart from other activities related to life-of-mine planning and design, mining method selection and equipment optimisation.
Talabira II and III OCP was reallocated to NLC India in 2016 after it was de-allocated in 2014 by the government when it was held by Mahanadi Coal Mines Ltd., NLC India Ltd & Hindalco (MNH Shakti).
Talabira Thermal Power Project
The Talabira Thermal Coal Power project is coming up in two phases: the first phase of 3x800 MW and second phase of 1x800 MW. “The first unit of phase one will get commissioned in the January of 2028 that will be followed by the second unit in June and third unit by December,” K Satya Prasad, executive director and project head of Talabira Thermal Power Project, told BQ Prime.
K Satya Prasad, Executive Director and Project Head Talabira Thermal Power Project
(Source: Company)
The company has shortlisted Larsen and Toubro Ltd. and Bharat Heavy Electricals Ltd. as the bidders for the EPC contract and work will be awarded after finalising the tender process, Prasad said.
“The land acquisition work is in progress and we hope to complete the entire process by end of December,” Prasad added.
According to Prasad, the total land requirement is 880 acres, of which 127 acres of government land is already in possession and disbursement of payment for private land is in progress.
The tender for construction of the first phase will be issued in January, and the first unit of the power project will get commissioned 52 months later, Prasad said.
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