Ghatampur Project to Boost NLC India’s Net Profit by ₹500 Crore.

NLC India, the government-owned coal and lignite mining and power producer, is set to begin commercial operations for the first of three units at its new Ghatampur thermal power plant in Uttar Pradesh on July 31. The commercial operation date (CoD) for the second and third units is expected in November 2024 and March 2025, respectively.

As a result, the 1,980 MW Ghatampur thermal power station will have its first full year of operations in the financial year 2025-26. NLC India's Chairman and Managing Director, Motupalli Prasanna Kumar, stated that electricity sales from the Ghatampur station are projected to boost the company's net profit by ₹500-600 crore.

In the 2023-24 financial year, NLC India reported a turnover of ₹10,518 crore and a net profit of ₹1,846 crore.

The first unit was connected to the grid in November. Addressing the delay in achieving CoD after synchronization, Kumar attributed it to delays in receiving the 'balance of plant' components, primarily ash and coal handling plants, from the supplier BGR Energy, which has been facing financial difficulties.

With these issues now resolved, Kumar is confident that NLC India will commission all three units of Ghatampur in 2024-25. The Ghatampur thermal power plant is being constructed with an investment of ₹19,406 crore by a joint venture between NLC India and Uttar Pradesh Rajya Vidyut Utpadan Nigam, with NLC India holding a 51% stake. Seventy-five percent of the electricity generated will be sold to UP Power Corporation at a levelized tariff of ₹4.52 per kWh, while the remaining generation will be sold to Assam.

In an April 2024 note, rating agency CRISIL affirmed NLC India's AAA rating, stating, "Commissioning of the NUPPL (Ghatampur) plant of 1,980 MW capacity during the current fiscal year 2025 will support cash flow over the medium term."

Coal for the power plant will come from NLC India's Pachwara South Coal Block in Jharkhand. The company will mine 9 million tonnes of coal annually from the block, using about 5-6 million tonnes to supply the Ghatampur plant, with the remainder sold on the market.

HBL