NLC India to commensurate Ghatampur project soon

State-owned NLC India, a coal and lignite mining and power producer, anticipates to start commercial operation from the first of the three units of its new Ghatampur thermal power plant in Uttar Pradesh, on July 31.

Therefore the ‘commercial operation date’ (the date from which the power purchase agreement period starts) for the second and third units is expected to be in November this year and March 2025.

Hence, in the financial year 2025-26, the 1,980 MW Ghatampur thermal power station will be in operation. NLC India’s Chairman and Managing Director, Motupalli Prasanna Kumar, the sales of electricity from the Ghatampur station will add Rs 500-600 crore to the company’s net profit.

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The Ghatampur thermal power plant is being set up with an investment of Rs 19,406 crore by a joint venture of NLC India and Uttar Pradesh Rajya Vidyut Utpadan Nigam, in which the former holds a 51 percent stake. Seventy-five percent of the electricity generated is to be sold to UP Power Corporation at a levelized tariff of Rs 4.52 a kWh. The rest of the generation will be sold to Assam.

“Commissioning of NUPPL (Ghatampur) plant of 1,980 MW capacity during current fiscal 2025, will support cash flow over the medium term,” the rating agency, CRISIL, said in an April 2024 note, giving NLC India a AAA rating.

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Coal for the power plant is to come from NLC India-owned Pachwara South Coal Block, Jharkhand. NLC India will mine 9 million tonnes of coal a year from the block but will use about 5-6 m tons for feeding the Ghatampur plant—the rest of the coal will be sold in the market. 

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