Leading lignite mining company in India Neyveli Lignite Corporation has announced another major solar power project.
Tamil Nadu-based lignite mining company Neyveli Lignite Corporation (NLC) Limited had announced plans to set up 300 MW solar power project in the eastern state of Odisha. The project is the latest to be announced by the company in its plan to set up 1 GW solar power capacity.
The company is looking to set up the project alongside a 1 GW solar power park being planned by the state government. The possible advantage could be the ready availability of transmission and power evacuation infrastructure.
Still, the final project site has not yet been decided. The company has also not provided estimate project cost. However, as per the latest tariff regulations issued by the Central Electricity Regulatory Commission the capital cost of solar PV projects is around Rs 5.30 crore (US$790,000) per MW. This puts the total cost of the project at around Rs 1,600 crore (US$238 million).
Neyveli Lignite, a government-owned entity, is working to set up large-scale solar power projects as per directions issued by the government. The upgraded National Solar Mission has a that of 100 GW installed solar power capacity by March 2022. The government has roped-in several public sector companies with large unused parcels of land and surplus cash on balance sheets to contribute towards this target.
NLC, last year, announced plan to set up 4,000 MW of solar projects across various states of India. The project would entail an investment of up to $4.6 billion. The proposed projects would be set up in the states of Tamil Nadu, Karnataka, Kerala, Telangana and Rajasthan.