Moneycontrol
Last Updated : May 28, 2012 10:47 PM IST | Source: CNBC-TV18

Plan to add 500 MW capacity in FY13: Neyveli Lignite

Neyveli Lignite has announced its fourth quarter results. AR Ansari, CMD of Neyveli Lignite says, the performance of FY11-12 is extremely encouraging. The company, he says, is contemplating to add another 500 megawatts, 2x250 megawatts to the capacity.


Neyveli Lignite has announced its fourth quarter results. The company's Q4 net profit was up at Rs 605 crore versus Rs 588 crore on year-on-year basis (YoY).


In an interview to CNBC-TV18, AR Ansari, chairman and managing director of Neyveli Lignite says, the performance of FY11-12 is extremely encouraging.


The company, he says, is contemplating to add another 500 megawatts, 2x250 megawatts to the capacity. “With this, it will go to around 3,200 megawatts by end of this financial year,” he adds.


Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video. 


Q: Could you give us a segmental break-up?


A: The performance of FY11-12 is extremely encouraging. Today, under the audited report, we have achieved excellent level of performance. My profit has shot up by 10% compared to previous year and has shot up 71% compared to 2008-09. Profit is today around Rs 1,411 crore as compared to last year’s Rs 1,298 crore. So, there is a substantial growth in the net worth of the organisation by 32% compared to 2008-09.


The income also has grown by 10% compared to last year, which today is Rs 5,600 crore, whereas turnover is around Rs 4,800 crore. So, all round, there is a growth in Neyveli Lignite Corporation.


We have capacity addition of 250 megawatt from Rajasthan. With this, the NLC will be on a growth path on a continuous basis in future.


Q: What really are your current power capacities and the planned capacity additions, as a whole, going ahead?


A: Our original capacity is 2,490 megawatts. Now, we have added 250 megawatts from Rajasthan. It becomes 2,740 megawatts. We are also contemplating to add another 500 megawatts, 2x250 megawatts to this capacity. With this, it will go to around 3,200 megawatts by end of this financial year.


Q: Given that you have had the advantage of additional capacities in fiscal 2012 as well, what really was your full year cumulative power generation for fiscal 2012?


A: There has been a tremendous growth in our power generation. We have even crossed the excellent level this year. We have produced in fact 18,800 million units in Neyveli this year. That is a great achievement.


The capacity addition came only in January-February 2012. With the old plant, we have added 500 million units additional by improving the efficiency of the machine, workman.


Q: What are your average PLFs across your power facilities for FY12 itself?


A: Average of all the plant is around 84% PLF. A coal based power station’s PLF is always 5% higher as per CERC norms. We are lignite, a low heat value coal. We are feeding that is lignite where we are supposed to give only 80% as per the norms, but there also we have produced beyond 83-84% PLF. So, that is the credit NLC wants to take because the employees have improved their performance including the machine performance.


Q: Regarding lignite mining, have your margins in the lignite mining business been facing some pressure? What is the outlook for this segment?


A: No, on the mining side, we have absolutely no problem. We have core competence. We are doing well in mining sector. There will be growth in mining sector. Once we get a coal block allotted, definitely that also we will open it. So far, we are doing only lignite mining. In lignite mining, we are facing no problem; everything is going on well as required.


Q: Could take us through your fiscal 2013 guidance? What are you expecting going ahead?

A: 2012-2013, definitely we are going to improve our efficiency further. We are going to have further growth, all round growth. We have led the foundation to grow suitably compared to this year, next year. NLC will continue to grow. With the capacity addition NLC will continue to grow and have an all round growth.

First Published on May 28, 2012 06:05 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant