NLC India posts yet another record performance in FY18
Neyveli (Tamil Nadu): At the corporate headquarters of NLC India Limited, CMD 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, benefiting the DISCOMS it serves by around Rs. 631 crores for FY18.
Technical expertise and efficiency in Mining operations combined with prudent cost management has resulted in reduction in Lignite Transfer Price for captive use, leading to lowering of power tariff by further 12 Paise to 19 Paise per KWhr w.e.f. April 1, 2018. Employee cost as a percentage of turnover and total cost has declined by 17.11 per cent and 13.50 per cent respectively over the last three years. In terms of financial performance, NLCIL's Sales for the 9 months period ending December 31, 2017 increased by 2.34 per cent, compared to the corresponding period in 2016-17, while total income increased by 2.99 per cent.
Further, It 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 March 31, 2015, an unparalleled record in public sector history. Green Energy, a key focus area at NLCIL, has got a 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 6 decades ago: Highest tonnage of Lignite Production in Mine II at Neyveli, an increase of 12.7 per cent in power generation at Barsingsar compared to the previous year, 46.1 per cent increase in Power Generation from TS II Expansion and 41.4 per cent increase in wind power generation.
Other significant achievements include 102.3 per cent increase in revenue from Power Trading, increase of 238.7 per cent in revenue from Raw Lignite and Minerals sales, which is the highest since 2014, and 29.78 per cent increase in revenue from Scrap Disposal, the highest in last 5 years.