Ann 0304 Chap 14

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CHAPTER XIV

NEYVELI LIGNITE CORPORATION LIMITED

14.1. Geological reserves of lignite in the country have been estimated at around 35636

Million Tonnes. Out of the above 4150 Million Tonnes (MT) spread over 480 sq. km. isin the Neyveli Lignite fields in Cuddalore District of which around 2360 Million Tonnes

have been proved. Geological reserves of about 1168 MT of lignite have been identifiedin Jayamkondacholapuram of Trichy District of Tamilnadu. In Mannargudi and East ofVeeranam, geological reserves of around 22898 Million Tonnes and 1342.45 Million

Tonnes of lignite have been estimated respectively.

14.2. Lignite reserves at Neyveli are exploited by Neyveli Lignite Corporation Ltd.(NLC), which was incorporated as a private limited company in 1956 wholly owned by

Government of India. With effect from 7th

March 1986, the Corporation was convertedinto public limited company.

EXISTING PROJECTS :

14.3. NLC is an integrated complex consisting of three lignite mines, three thermal

power stations. The capacity of the various units is as under:

Mine-I - 10.5 MT/ annum.Mine-IA - 3.0 MT / annumMine-II - 10.5 MT/ annum.

Thermal Power Station-I (linked to Mine-I) - 600 MWThermal Power Station-I Expansion (linked to Mine-I) - 420 MW

Thermal Power Station-II (linked to Mine-II) - 1470 MW

MINEI

14.4. The first Lignite Mine has been in operation since 1961 using continuous mining

technology viz., Bucket Wheel Excavators, Mobile Transfer Conveyors and System ofConveyors, which are used for excavation and transportation of lignite and overburden.Spreaders are used for dumping of overburden. The technology and the equipment were

imported from Germany and German credit was availed for import of Specialized Mining

Equipment (SME). The capacity of this Mine was 6.5 MT which will meet the fuelrequirement of Thermal Power Station-I. The capacity was increased to 10.5 MT ofLignite/Annum from March 2003 and at present meets the fuel requirement forgenerating power from Thermal Power Station-I and Thermal Power Station-I Expansion.

THERMAL POWER STATION-I

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14.5. The Thermal Power Station-I (capacity 600 MW) has six units of 50 MW eachand three units of 100 MW each. The nine units of this power station were commissioned

between May, 1962 and Sept, 1970. The equipments of this power station were importedfrom the then USSR under Indo-Soviet assistance Programme. The erection was entirely

carried out by Indian engineers/ workers under the supervision of experts from the USSR.

Entire power generated from this thermal power station after meeting NLC's requirementis fed into the Tamil Nadu Electricity Board grid, which is the sole beneficiary. As the

units have served more than its normal life (One lakh unit running hours), Life ExtensionProgramme was taken up between April 1992 and March 1999. The life of this plant has

been extended by fifteen years.

MINE-I A

14.6. The Mine-IA Project The mine (capacity of 3 MTPA) uses continuous mining

technology viz. Bucket Wheel Excavators, Mobile Transfer Conveyors and system ofconveyors which are used for excavation and transportation of lignite and Overburden.

The project was sanctioned by Govt. of India in February 1998 at a cost of Rs.1032.81Crs and the Lignite production commenced from 30th March 2003. The project wascompleted without time and cost over run. The lignite excavated from this mine is

catering to the needs of M/s. ST-CMS, an IPP and to utilize the balance for the bestcommercial advantage of the existing Power Plants of NLC.

MINE-II

14.7. The second mine was implemented in two stages. In the first stage the productioncapacity was 4.7 MTPA and in second stage it was increased to 10.5 MTPA and theexpansion was completed in December, 1991 with the commissioning of last overburden

system. Specialized Mining Equipment, viz., BWEs, Spreaders, Mobile TransferConveyors were imported from Germany with sizeable indigenous content. The

conveyors for Second Mine were supplied by M/s. Elecon Engineering, India.

THERMAL POWER STATION-II

14.8. The second power station was implemented in two stages. Under Stage-I, 3 unitsof 210 MW each were commissioned between March, 1986 to March 1988. Boilers weresupplied by M/s. Trans-Electro, Hungary and Turbo Generators by M/s. Franco Tosi of

Italy. Under Stage-II, 4 units of 210 MW each were commissioned between March 1991

and June1993. Equipment were supplied by M/s. Bharat Heavy Electricals Limited(BHEL), India. Power generated from the Second Thermal Power Station after meetingNLC's internal requirements is shared by the Southern States viz. Tamilnadu, AndhraPradesh, Karnataka, Kerala and Union Territory of Pondicherry in accordance with the

formula on sharing of power applicable to the power stations set up in the Central Sector.

PROJECTS UNDER CONSTRUCTION

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14.9. Thermal Power Station-I Expansion (2 X 210 Mw Units) : Government ofIndia sanctioned the installation of 2 units of 210 MW for expansion of first Thermal

Power Station on 12th February96 at a cost of Rs. 1590.58 Crores. The first 210 MWunit was synchronized on 21st October 2002 and Unit-I was dedicated to the Nation by

Honble Union Minister of Coal & Mines on 18.12.2002. Subsequently the second 210

MW Unit was synchronized on 22

nd

July 2003.

PROJECTS IN PIPELINE

14.10. Mine-II Expansion (4.5 MTPA) The project was placed before the PIB for aninvestment decision. PIB in its meeting held on 17th February 2004 had considered theproject and recommended to place the project proposal before the CCEA for their

consideration and approval. Draft CCEA note is under preparation in the Department.Tender for appointment of consultant for project monitoring was opened on 25th February

2004 and evaluation is in progress. Certain clarifications have been sought by NLC fromthe participating firms.

14.11. TPS-II Expansion (2x250 MW) The project was placed before the PIB for aninvestment decision. PIB in its meeting held on 17th February, 2004 had considered the

project and recommended to place the project proposal before the CCEA for theirconsideration and approval. The draft CCEA note is under preparation in theDepartment. NLC has appointed M/s TATA Consulting Engineers, Bangalore as the

project consultant on 19th November, 2003. Preparation of tender documents withspecifications is under progress.

14.12. Barsingsar Mine Project (2.10 MTPA.) This project was considered in theIMG meeting held in November 2002 and recommended to PIB for investment decision.

The feasibility report has been re-cast for the option of outsourcing OB removal andlignite mining departmentally. The Revised Cost Estimates for the above option have

been worked out and with the approval of NLC Board, the revised project cost estimateswere submitted to Department of Coal for further processing. The revised PIBmemorandum for the OB removal by outsourcing and lignite mining departmentally was

sent to Department of Coal. The PIB memorandum has been circulated to the variousappraisal agencies. The PIB meeting to discuss the above project is yet to be held.

Advance Action proposal For the Geo Technical Investigation work, Tenderwas opened on 27th Feb. 04. Eight firms quoted. Clarifications were sent to the firms on

31st March 2004.

14.13. Barsingsar Power Project (2x125 MW.) This project was considered in theIMG meeting held in November 2002 and recommended to PIB for investment decision.The revised draft PIB memorandum with updated project cost was submitted to

Department of Coal in November, 2003. The PIB memorandum has been circulated tovarious appraisal agencies. The PIB meeting to discuss the above project is yet to be

held. Power Purchase Agreement (PPA) with M/s. RVPN and water supply agreementwith M/s. IGNP were signed on 8th October 2003. Press tender issued in August, 2003

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for appointment of Project Consultants and preparation of tender documents withspecifications and the tender was opened by NLC on 22nd September, 2003. Evaluation

is in progress.

PROJECTS UNDER CONSIDERATION OF GOVERNMENT OF INDIA

14.14. Refinery Residue based Power Plant at Chennai (492 MW) (Joint Venture

project with Chennai Petroleum Corporation Limited) Department of Coal granted inprinciple approval to the project in October 2003. NLC has sent the draft MOU sent to

M/s. CPCL for their comments and review on 29th October 2003. Advance ActionProposal for incurring expenditure for carrying out certain pre-project activities such aspreparation of FR, environment report etc. has been sanctioned by the Department in

February, 2004. NLC has initiated action to fix an agency to prepare detailed feasibilityreport. A meeting was held at Neyveli on 24th February, 2004 with Executive Director

and other Officials of CPCL. ED/CPCL informed that the expansion project of CPCL hasbeen commissioned as per schedule during February, 2004. Hence, CPCL requestedNLC to expedite the project. Press tender for preparation of Detailed Feasibility Report

issued by NLC on 26th of March, 2004. Sale of tender was open from 26th March 2004 to24th April 2004. Tender opening was scheduled on 26th April 2004.

14.15. TPS-I Expansion Stage-II (Power Plant at B&C Site) (1x125 MW) Thefeasibility report had been sent to the Planning commission for obtaining their in

principle clearance. The Planning Commission has granted in principle approval tothe project. NLC has been requested to modify the feasibility repot as per the observation

of Planning Commission before the proposal is processed further. EIA/EMP report wassubmitted by Consultant, M/s. Vimta Lab, Hyderabad on 27th November 2003. Actionhas been initiated to obtain NOC from Tamil Nadu Pollution Control Board for the

project. M/s KSEB have expressed to draw 50 MW from this project. Karnataka PowerTransmission Corporation Ltd. have expressed conditional acceptance for 50 MW from

this project. Reply to queries raised by the public during the public hearing submitted toTamil Nadu Pollution Control Board by NLC.

14.16. Coal based Thermal Power Plant at Tuticorin (2x500 MW) (Joint VentureProject with TNEB) Department of Coal had sanctioned Advance Action Plan for Rs.

2.50 crores in July 2003. Draft joint venture agreement, draft Memorandum ofAssociation and draft Articles of Association were sent to TNEB for review and remarks.The remarks/comments furnished by TNEB were incorporated and sent to TNEB for

perusal on 15th December 2003. In respect of coal linkage for the project, M/s. MahanadiCoalfields Ltd. has informed that the coal linkage will depend upon the availability of

coal either from Talcher coalfields or from Ib coalfields and will inform afterexamination. Southern Railways has been requested to indicate their requirement ofpower from this proposed power project. M/s DCPL, Chennai was appointed as a

consultant on 24th November 2003 for preparation of feasibility report(FR). Preparationof draft FR is under progress. M/s KSEB has informed that 100 MW of power is required

by them from this project. Meeting has been held with Port Trust officials on 15th December 2003 with regard to leasing of port land to the JV coal based power project at

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Tuticorin. A meeting was held at Neyveli on 21st Feb.04 with Chairman, TNEB and otherofficials on the issues like leasing of land, finalisation of plant layout, registration of joint

venture and MOA, etc.

EIA EMP Report LOI issued to M/s Kirlosar on 29th March 2004 for

conducting rapid EIA study and preparation of Environmental report.

NLC has remitted Rs.500/- as registration fee for the availability of name for theJoint Venture Company to the Registrar of Companies (ROC), Chennai in March 2004

and subsequently the ROC has issued the availability of the name NLC Tamil NaduPower Ltd.

14.17. Coal based Thermal Power Plant at Orissa (4x500 MW) The Department ofCoal granted in principle approval for taking up of the project in June 2003 and the

Advance Action Proposal for 18.65 crores sanctioned by the Department of Coal in July2003 for incurring expenditure on certain preliminary activities. NLC gave apresentation to the constituent members of the Western Region Electricity Board at

Mumbai in July 2003 and also to the members of Southern Regional Electricity Board atBangalore in September 2003. WREB, GEB, MSEB, Electricity Department, Goa and

SREB had been addressed to indicate the quantum of power required from the proposedpower project and the same is awaited.

M/s. PGCIL has been asked to take up the preliminary study for making arrangementfor evacuation of power to Western and Southern Regions as indicated by the

constituents of State Electricity Boards. LOI has been issued to M/s. Mathenson Records Management Pvt. Ltd. Mumbai on

4th Feb.04 for digitizing 24 village maps which will be used for preparing the land

acquisition map. Soft copy of the 20 digitized village maps have been received on23rd Feb.04 from the consultant.

EIA-EMP Report LOI has been issued to M/s. Vimta Labs Hyderabad on 29th March, 2004 for rapid EIA study and preparation of Environmental report.

Purchase of Power KPTCL has indicated their intention to draw 400 MW power

from this project.

14.18. Coal based Thermal Power Plant at Madhya Pradesh (1000 MW) Department of Coal had requested NLC to examine the possibility of setting up a coalbased thermal power plant of 1000 MW capacity in Madhya Pradesh. NLC examined the

proposal and sent an overall plan for the project to the Department in July, 2003 with arequest to issue in-principle approval to take up the project. With regard to coal

linkage, M/s. South Eastern Coalfields Ltd. has been requested either to indicate theavailability of coal in Madhya Pradesh or to indicate a captive coal block that could bereleased for this power project. NLC will submit a detailed proposal after finalising the

coal linkage, location and water source.

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14.19. Mine-III (8.0 MTPA) FR is under finalization. Draft EIA-EMP reports havebeen prepared and the same will be finalized after finalizing FR. Since the lignite price

projected in FR is on higher side, alternate mining technology options are being explored.

14.20. TPS-III (2x500 MW) The project is linked to NLCs Mine III project. Draft FR

has been made ready. The FR could be finalized only after finalizing the linked MiningFR. Draft EIA-EMP reports have been prepared and the same will be finalized after

finalizing FR.

PERFORMANCE OF EXISTING PROJECTS :

14.21. Overburden removal, lignite production, gross power generation and its export

during the year 2003-2004 (April 2003 to March 2004) are indicated below :

April 2003 to March 2004Product Unit

Target Actual

Overburden LM 3 1160.00 1160.70

Lignite LT 209.00 205.57

Power Gross MU 15006.00 16388.21

Power Export MU 12481.00 13920.18

Reasons for shortfall

MINES

Lignite production:

Lignite production in Mine-I (including Expn.) has exceeded the target. However,

lignite production was affected in Mine-II and Mine-IA.

Mine-II Lignite production could not reach the target as lignite exposure couldnot be developed due to non-availability of BWEs working in overburden systemwhich were taken up for overhaul/modification works and also due to higher

overburden to lignite ratio encountered in the area of present operation.

Mine-IA Lignite production was affected mainly owing to teething problems inestablishing the lignite systems till August 03 and less off-take from M/s ST-CMS during the year.

PRODUCTIVITY

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14.22. The productivity performance in 2002-2003 and 2003-2004 (April 2003 to

March 2004) are furnished in the table below:

OUTPUT PER MANSHIFT (OMS)

2002-2003 2003-2004(Apr. 03 to March 04)Unit

Actual Target Actual

Mine-I (OB+ Lig.) Tonne 132.82 108.71 99.66

Mine-II (OB+ Lig.) Tonne 156.00 110.89 117.64

T.P.S-I KwHr 13225 8608 11784

T.P.S-II KwHr 20859 12477 17024

14.23. The PLF achieved by TPS-I and TPS-II during 2002- 2003 and 2003-2004 (April2003 to March 2004) are as under :

(in percentage)

2002-20032003-2004

(Apr 2003 to March 2004)UnitActual Target Actual

T.P.S-I 83.31 69.82 83.49

T.P.S-II 81.56 69.82 77.48

AUTHORISED CAPITAL

14.24. The authorised capital of NLC is Rs2000 crores. The investment by Govt.of Indiaupto 31.03.2004 is as under :-

FINANCIAL PERFORMANCE

14.25. NLC has been making profits since 1976-77. During 2002-2003 the Corporationearned a pretax profit of Rs.1687.83 Crores. The Corporation has earned pretax profit ofRs.1362.82 Crore (Prov.) during 2003-2004 (upto March 2004). Reserves and surplus as

on 31.03.2003 was Rs.4290.46 Crs.

NLC has declared its dividend of Rs.264.97Crores (including distributiontax) for the year 2002-2003.

14.26. NLCs sales turnover in 2002-2003 was Rs.2681.48 Crores against Rs.2236.95Crores during 2001-2002. The sales turnover during 2003-2004 (upto March 2004) was

Rs.2815.96 Crores (Provl.) as against Rs.2681.48 Crores during the correspondingperiod of last year.

Equity (GOI portion) Rs.1569.64 Crore

Loan from GOI (including accrued interest) Nil

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Product wise sales during 2003-2004 (Up to March 2004) is as under :(Rs. In crores)

Product Value (Provl)

Lignite 189.98

Power 2622.57

Others3.41

Total 2815.96

State Electricity Boards Dues: Based on the tripartite agreement for settlement

of dues upto 30.09.2001, under securitisation scheme, an amount of Rs.2590.77Crs. (8.5% Tax free bonds) was received on 01.09.2003. Outstanding dues fromthe State Electricity Boards as on 31.03.2004 was Rs.626.33 Crores.

(Provisional).

LIGNITE EXPLORATION

14.27. Lignite reserves in India have been currently estimated at around 35636 million

tonnes. The state wise distribution of lignite reserves is as follows :-

As on 01.01.2003

State Area Geological reserves(M.T.)

Tamilnadu

&

Pondicherry

Neyveli

Bahur

West of Bahur

Jayamkondachola puram

Mannargudi

East of VeeranamKudikadu

Micheal Patti

Kulanchavadi

4150.00

575.00

58.60

1168.00

22898.00

1342.45133.38

23.07

175.00

30523

Rajasthan 3099

Gujarat 1778

Jammu & Kashmir 128

Kerala 108

Total 35636

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CONTRACTUAL EXPLORATION & DRILLING ACTIVITIES

14.28. With in the lease hold area of NLC, Block-B and Devangudi lignite blocks areidentified for future development by NLC. The lignite reserves in these two blocks are

placed under indicated category only. Hence, NLC proposed 8500M of drilling to be

carried out during 2002 to 2004 in order to bring the reserves under proved category anddemarcate mining blocks to enable NLC to attempt feasibility studies for future mining.

The drilling work was carried out by M/s. MECL.

Drilling achievement for the period during April 2002 to March 2004 in Block-Band Devangudi are as follows:

Block No. of BH Meterage drilled

Devangudi 32 2471

Block-B 36 5611

Total 68 8082

DRILLING UNDER PROMOTIONAL SCHEME (FUNDED BY GOVT. OF

INDIA)

14.29. Lignite exploration under promotional scheme funded by Department of Coal is

being carried out by MECL in Mannargudi lignite field in Tamilnadu, Riri lignite blocksin Bikanar District and Nimbalkot blocks in Barmer District of Rajasthan. Theexploration is monitored by CMPDIL, Ranchi.

RESEARCH AND DEVELOPMENT

14.30. The Research and Development activities were continued during the year. TheCentre for Applied Research & Development (CARD) is the in-house R&D Centre of

NLC and has been recognized by the Department of Science & Technology since 1975.CARD is carrying out various research works on lignite utilization, diversification,

product development, by-product utilization wasteland reclamation etc. Based on theR&D works, some of the processes have been scaled up to pilot plant scale. CARD isalso carrying out various environmental monitoring of air, water and soils. It is having

well-established analytical facilities and is rendering analytical services towards qualitycontrol of various materials/products used in mines and power stations and also to other

outside industries. The details of various R&D activities being carried out are as under:-

DEPARTMENT OF COAL S&T PROJECTS ON GOING

A) Pond Ash Reclamation and Possibilities of Utilization of Industrial Waste

for the Re-vegetation and Developing Green Cover.

Description of the Project

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The main objective of the project is to reclaim ash pond area through greeningwith field and horticultural crops such as trees and shrubs having high nutrient

utilization efficiency and bio-mass production capacity in order to create andconserve stable bio-diversity in the ash pond site.

Status as on March 2004:Preliminary survey, lab/pot culture experiments were completed. Surface

and profile soil samples were collected and analysed for their physico chemicalproperties. Preliminary field trial was completed. Among the different crops,

tested crops like cucumber, maize, black gram has grown well.

Ash & water samples were collected from observatory bore wells and analyzed

for heavy metal content. The study indicates that the heavy metal leaching isnegligible in the abandoned ash pond. Biometric observation is being recorded

regularly. Best treatments from the 3rd, 4th & 5th phase selected and cultivated inlarger area during last week of Nov 2002. Large-scale demonstration completedwith Maize, Sorghum, groundnut, sunflower, bhendi and cluster bean, and field

harvest inaugurated by CMD/NLC on 26.02.03. Statistical analysis and heavymetal analysis in plant & soil is in progress. Plant produces were sent to CFTRI,

Mysore for heavy metal analysis. Ash and water collected during the currentperiod are being analyzed. Consolidation of data, statistical analysis and draftreport will be submitted shortly.

B) Field Studies on Application of Lignite Humic acid on Various Crop

Responses in Different Agro - Climatic Conditions .


The main objective of the project is to study the soil/crop requirement of humicacid on five different crops at various soil types and to popularize to farmers

through Tamil Nadu Agricultural University Demonstration Centres located atCuddalore, Neyveli, Tanjore and Coimbatore.

Status as on March 2004:Preliminary survey, sample collection, procurement of equipments and pot

culture experiments were completed. Humic Acid sample was given for fieldtrial works. More than 55 field trials completed at different agro climaticconditions were tested with varying levels of humic acid and found that there is a

good crop response in all locations to the HA applied. Application of HAincreased the yield by 20-30 % in most of the crops including tea. Post harvest

soil samples were also collected from different locations for analysis.Construction of Poly green house completed at CARD and first phaseexperiments completed with hybrid tomato, hybrid chilies, beans and cabbage.

Test verification trials at farmers holdings and in TNAU research stations are inprogress.

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C) Bio processing of Lignite and Bioremediation of its Sulphur Rich Wastes forDevelopment of Value Added Products.


The main objective of the project is to develop a technology to solubilize lignite

by employing microorganisms, to study the production of methane from lignite bythe anaerobic methanogenic bacteria, to microbiologically desulphurise bottom

slag and Marcasite so as to recover sulphur, to microbiologically desulpurise thelignite to reduce the environmental pollution.

Status as on March2004:Slag, lignite and soil samples were collected from Mines and TPS and used in thestudy. Microorganisms associated with the habitat were isolated. Preliminary lab

studies were completed. Microbial leaching study using glass column methodcompleted.

At IIT/Delhi, they have conducted a literature survey at IIT/Delhi, NationalMedical Library, NIC, JNU, DBT and Procured bacterial strains viz. Thiobacillus

ferroxidans and Sulfolobus acidocaldarius from MTCC, Chandigarh. By usingthese cultures along with culture developed at CARD / NLC, they are conducting

desulphurization experiments and found that 33% desulphurization in Neyvelilignite. Further enrichment culture studies and time optimization studies on theprocess of biodesulfurisation were undertaken.

An experiment was conducted on lignite biomethanation. Lignite was added in

different proportion with cow dung and biogas generation was measured atperiodical intervals. It was observed that cow dung with 20 % lignite producedmore biogas than other treatments.

Heap leaching on bottom slag using nutrient solution with sulphur oxidizing

bacterium Thiobacillus ferroxidans was conducted. Periodical analysis found thatde-sulphurization is taking place. Bio methanation of studies with lignite andisolation of methanogenic bacteria are in progress by using anaerobic chamber.

D) Development of cost effective high Performance Highway using fly ash

composite:


The main objective of the project is to develop a cost effective high performanceroad in the following ways: To prepare a suitable mix using fly ash, soil and

additives for the sub base of the road. To prepare a suitable mix using fly ash,cement and aggregate for the top wearing layer of the road. To preparelightweight porous skirting blocks and aggregate with a suitable mix using fly

ash, lime and additives for drains of the road.

Status as on March 2004:

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Characterization of raw material completed. Mix design of sub base using flyash, sand, gravel & lime arrived, Mix design for concrete pavement using M-40

grade high performance concrete completed. Due to administrative reasons AnnaUniversity could not lay the model road so it was decided to lay short stretch of

road in NLC area at Neyveli and then going for 2KM road as contemplated in the

project. Laying of model road at NLC township area completed and the road wasopened to traffic on 31.01.2004. Extension of project duration up to April 2005

requested to study the performance in two consecutive rainy seasons. Reappropriation of funds for the project requested. Preparatory work for laying

experimental stretches of road is in progress.

E) Enhancement of recharge potential in the recharge area to the Neyveli deep-

seated aquifers.

Description of the Project:Studying the effectiveness of three different artificial recharge arrangements(percolation pond, recharge wells and check dams) for enhancement of recharge

and to study the variability of recharge season-wise. Comparative evaluation ofdifferent alternative artificial recharge arrangement and to suggest the suitable

technique with reference to space. To study the combined effect of three differenttypes of artificial recharge structures in a single area. This study will throw lighton the effect of recharge structures in off setting the deficit condition thus

avoiding the possible adverse effects such as decline in water level, change inwater quality and salt water intrusion. To delineate strategies for maintenance of

artificial recharge arrangements.

Status on March 2004:

Construction of artificial recharge structures i.e checks dams; water rechargewells and percolation wells are completed. Monitoring the ground water quality

and quantity, establishment of piezometer wells and observation wells arecompleted and the monitoring activities are in progress.

F) Separation of Marcasite from pulverized lignite using fluidized bed

Description of the Project:The project is aimed to study the effect of parameters namely flow rates of thephases, material characteristics and composition of light and dense particles on

the separation of higher density material (Marcasite) from lower density material(Lignite) in a Laboratory fluidized bed and to optimize the operational parameters

to achieve maximum separation. Mathematical model is to be developed for themechanism of the separation of particles.

Status as on March 2004.The project has been sanctioned with effect form 01 October 2003.As per the

schedule literature survey are being done; lignite & Marcasite samples were

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collected. Samples prepared at CARD and dispatched to IIT/Madras to conductexperiments. Characterization of samples is under progress.

G) Development of a process for the production of activated carbon from

Neyveli Lignite

Description of the Project:

The project is aimed to develop a process for the conversion of lignite topowdered activated carbon involving reactive solids & to optimize the process

parameters. Obtaining process engineering data for scale up to commercialplant level. The product obtained will be characterized as per national andinternational standards and also to confirm techno economic feasibility for

commercial scale production.

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Status as on March 2004.The project has been sanctioned with effect from 01 November 2003.

Preliminary discussions and preparation of equipment specifications are inprogress. Staff recruitment for RRL/T completed. The design of the plant is in

progress. The pilot plant will be installed at NLC for which approval has been

obtained from CMPDIL. Lignite sample has been sent to RRL/T for conductingthe study in their laboratory.

IN HOUSE RESEARCH PROJECTS

IX TH PLAN Projects:

1. Laboratory study on the effect of quality of lignite on ash fusioncharacteristics and heat value

Outlay: Rs. 58.62 lakhs.

The aim of the project is to study the fusion property of ash and heat value with

respect to quality variation. The study will help to predict the effect of impuritieson the possible working problems of thermal power stations, apart from lignite

quality evaluation. Studies were carried out with lignite by adding differentproportion of impurities like marcasite, silica, alumina and calcium. By addingmarcasite, the ash fusion temperature is decreasing and in all other cases it is

increasing. Using Heating Microscope, a study to find the fusion characteristic oflignite ash generated in TPS-II is a gas atmosphere similar to flue gas was carried

out. The study indicated that the fusion characteristics of the samples are notmuch affected by the flue gas atmosphere. It is also observed that the fusioncharacteristics of the ash depend on the chemical composition of the individual

ashes. The variations of heat value with ash content of lignite samples werestudied. It is observed that the heat value of lignite decreases with increase in ash

content. The experimental part of the project is completed.

2. Study on the micropetrographic analysis (Reflectance and maceral studies)

of lignite.Outlay: Rs. 45.00 Lakhs.

The aim of the project is to study and analyze the lignite/coal megascopically aswell as microscopically to describe its maceral, mineral constituents in detail.

This will help to determine the maturity (rank) of coal and distribution ofmacerals percentage, which can give information about the different chemical and

technological behaviour of lignite on briquetting, combustion etc. The Trinocularmicroscope purchased for this study has been commissioned during June 2003.Lignite samples have been collected. Microscopic observations are under

progress.

3. Studies on the characteristic of product/waste substance developed bybiological methods.

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The aim of the project is to investigate preliminarily the production of valueadded products from lignite such as solubilised lignite and methane by the

application of biotechnology. This study will be useful to exploit the utilization of

lignite deposits as thin seams or as deep deposits or in the proximity of seamaking it inaccessible for mining. The best strain screened was multiplied in the

pilot fermentor and solubilisation was studied in larger scale. The equipmentapproved for the project has been commissioned. Experiments were conducted to

increase the solubilisation by biotechnical method. Methane producingmicroorganisms were isolated from the samples & observed that methanegeneration is possible from lignite, and it was characterized. The project is

completed.

4. Environmental studies for Neyveli and adjacent areas.Outlay: Rs. 70.18 Lakhs.

To conduct a comprehensive study on the prevailing levels of pollution in air,water and soil in the project area and identify the possible impacts of expansion

projects in the future scenario and suggest remedial measure. The study ofbackground level of pollution and the projection of anticipated environmentalimpacts will help in taking adequate control measures well in advance to prevent

adverse impacts on environment. The study has been completed.

5. Combustion studies.Outlay: Rs. 80.62 Lakhs.

Lignite fired power plants are facing different types of problems due to thepresence of high ash and marcasite in the lignite. In this connection UNIDO has

given funds for installation of combustion test furnace at LERI, to study thecombustion characteristic of lignite. Some preliminary studies have beenconducted. The project will be useful for power plants to reduce the forced

outages due to the presence of marcasite in lignite.

6. Studies on the distribution of trace elements/leaching and exploring the

possibility of bulk disposal of fly ash as subsoil spread in back-filled areas ofmine.


The aim of the project is to make a comprehensive study of safe bulk disposal offly ash/pond ash in mine back-fills as subsoil spread and also to investigate theimpact due to movement of trace elements etc. on crop growth and on subsoil

water. Lab studies have been carried out to characterize the fly ash, soil and minespoil using XRF spectrometer. Field investigation was carried out at ash pond,

TPS-I. A laboratory experiment was carried out simulating the filling of fly ash inmine spoil. Leachates were collected and analyzed. From the results, it is

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observed that there is no appreciable leaching of heavy metals. The project iscompleted

7. Studies on the biological reclamation of mine spoil and monitoring crops

productivity at Mines

Outlay: Rs. 4.02 Lakhs.

The aim of the project is to make a comprehensive study on the establishment ofgreen crops and biological nitrogen fixation, enrichment in mine spoil and to

evaluate the beneficial effects of their incorporation on thephysiochemical/biological properties of mine spoil for cultivation of agricultural,horticultural and floricultural crops. Confirmatory field trials are being conducted

at afforestation Mine-II with crops such as paddy, maize, green gram andsugarcane. Field experiments are conducted based on the recommendations of

previous coal S&T projects. It is found that in the mine spoil, the yield wasachieved on par with normal soil. The project is completed.

8. Field studies on the application of developed bio-products on various crops/tree species in various soil types.

Outlay: Rs. 4.41 Lakhs.

The aim of the project is to test the products developed by CARD/NLC namely

biofertilizers, VAM and humic acid on the growth of orchid / forest tree species.The yields of certain crop species either alone or in combination with mycorrhizal

fungi, which will be useful, for developing green belt in wastelands will bestudied. As a long-term study field trials were carried out with the humic acid,biofertilizer and VAM. In the short duration crops such as green gram, black

gram, brinjal, tomato, groundnut, radish, carrot, beat root, cabbage, turnip,cauliflower etc, it is observed that application of humic acid at the rate of 10 kg/ha

increased the yield from 20-60%. The humic acid developed by biological methodhas been tested in the field crops. It is observed that application of humic acid,biofertilizers and VAM increases the yield in the crops as well increases the

growth of trees. The project has been completed.

9. Studies on the possibilities of bioremediation, conversion of bottom slag and

biodegradation of industrial wastes.Outlay: Rs. 32.44 Lakhs.

The aim of the study is to develop efficient mesophilic and thermophilic strains of

bacteria, capable of leaching iron/sulphur from bottom slag, marcasite and ligniteand also bacterial strains capable of degrading aromatic compounds to hetro-cyclic compounds in the phenolic effluents for the safe disposal. This study aims

to reduce the environment pollution arising due to slag disposal by ThermalPower Stations. Desulphurisation experiments were conducted using isolated

microorganisms from lignite, slag dumped at Mine II by TPS-II. There is a

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remarkable reduction in the Iron and sulphur contents and the extraction ispossible from the bottom slag. The project is completed.

10. Developmental studies on humic acid.


This study is undertaken with reference to Department of Coal suggestionsto provide infrastructure facilities/support to Coal S&T project. Humic acid at

different concentration 0.1% to 10% is tested for its properties in comparison withsome of the imported product available in the market. The product was suppliedto Tamil Nadu Agricultural University for field trials and also to outside agencies.

Poly Green House construction had been completed and first phase pot cultureexperiment has been completed with various crops. Procurement of certain drying

equipments and second phase pot culture experiments are in progress.

X TH PLAN PROJECTS

1. Long term studies on utilization /popularization studies of fly ash in

agricultural crops/soil.Recently NLC and CFRI completed the Coal S&T Project Fly ash

utilization in agriculture and found that fly ash application beneficial to crops.

However, long-term studies are required in the same field as well as other soils inorder to study the heavy metal uptake and leaching of fly ash. The studies are in

progress.

2. Long term studies on Humic acid / VAM application.

VAM application studies were completed and report submitted to SSRC.Monitoring of the growth of the plants, which are planted during the trials are in

progress. Long-term field studies on the effect of humic acid on various crops alsoto be studied. Regarding this preparation of estimate is in progress.

3. Transforming NLC mine spoil into productive agricultural land through eco-

friendly forming system. (NLC and TNAU/Coimbatore)

NLC is mining out the over burden and back filling it in the mined outarea. Back filled area soils contain no nutrients and also microbes. The project isto develop agricultural land by integrated forming with crop production, animal

husbandry, fishery, mushroom, biogas generation etc., After completion of theproject period, the land will be fit enough for agricultural use along with other

systems. MOU has been signed and the project will be taken up from 01-04-2004.

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4. Pilot studies on the stabilization, revegetation and restoration of ecology inNLC mine spoil. (NLC and TNAU/Coimbatore)

The mined out soil is initially dumped in an area as over burden andslopes are formed. As no care was taken the slope is not fit enough for the

vegetation and gully formation is made due to rain. To stabilize the slope and

also for revegetation various methods will be evaluated to conserve the soil andalso to control erosion. It is also decided to develop a green cover in the slopes.

MOU has been signed and the project will be taken up from 01-04-2004.

FOREIGN COLLABRATION IN THE FIELD OF SCIENCE & TECHNOLOGYPROJECTS NIL

UNDP PROJECTS NILMANPOWER

14.31. The total manpower of NLC as on 31.03.2004 is indicated below :

Category Technical Non- Technical Total

Executives 3096 548 3644

Supervisor 513 0 513

Staff 3058 3152 6210

Workmen 2673 6140 8813

Total 9340 9840 19180

INDUSTRIAL RELATIONS

14.32. The Industrial Relations atmosphere in NLC signifies employee friendly attitudeof the management which shows greater care in dealing with human resources. The

recognised Unions and Associations in turn are looking beyond their own problems torealise their responsibility to be more responsive to the needs of increasing productivity.

RESERVATION

14.33. NLC is following reservation rules prescribed by the Government of India fromtime to time. All directives issued by Government of India in the matter of reservation in

recruitment & promotions are being followed. A cell exclusively for SC/ST matters isfunctioning under a Liaison Officer at the level of General Manager to ensure that thereservation rules and guide lines for SC/ST are implemented properly.

The details relating to the percentage of reserved categories of employees as on31/03/04 are furnished below:

Applicable

Percentage of

Reservation

Manpower positionAvailable

PercentageGroup

SC ST Total SC ST SC ST

A 15 7.5 2764 560 50 20.26 1.81

B 16.66 7.5 880 174 44 19.77 5.00

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C 19 1 11892 2594 132 21.81 1.11

Excl.

Sweepers19 1 3547 611 20 17.23 0.56

D

Sweepers 97 70 -- 72.16 0.00

Total 19180 4009 246 20.90 1.28

VIGILANCE

14.34. To make the administration efficient, effective and clean without corruption,

multifaceted strategy covering areas of preventive, detective and punitive vigilance arecontinued to be adopted as per the guidelines of Chief Vigilance Commissioner.

Periodical surveillance, collection of intelligence information and frequent surprisechecks are being carried out in various corruption prone areas in order tominimize/eradicate various malpractices.

Allegations of corrupt practices, favouritism, breach of rules and procedures were

enquired into thoroughly and the Management was appraised for initiating necessaryaction. Close liaison is being maintained with the local Police Departments, CBI/Chennaiand CVC for carrying out vigilance activities of NLC. In terms of instructions of the

Government, Agreed List of Officers of doubtful integrity is prepared in consultationwith Central Bureau of Investigation and surveillance mounted on the activities of the

executives. In addition to this, punitive action was also recommended against workmen,supervisors, executive and suppliers/contractors whose lack of integrity came to notice.

Total number of complaints and the source information received and disposed off

during 2003-2004 are tabulated below:

Description 2003-2004

Complaints brought forward fromprevious year (2002 2003)

32

Complaints received during this year 132

Complaints disposed 122

Complaints pending 42

WELFARE

HOUSING

14.35. The sprawling residential township with a maze of roads, excellent drainagesystems, waste disposal arrangements, water facility and other recreational facilities

provide the perfect ambience for the employees and their dependents to feel comfortable,secured and create the atmosphere of being well cared for by the Management. As high as21,510 houses nestled in the green canopy of trees make NLC Township a place

ecologically balanced and environment friendly to live in to achieve quality of work life.

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It is abound with facilities for quality education up to college level, medical care,recreation, religious needs and shopping.

MEDICAL SERVICES

14.36.NLC Hospital is contemplating the best posture it can take in providing a widerange of Health Care Services to its employees, dependent population and other rural

communities (over 3,00,000). It engages in four broad areas of activity:

(i) Operation of the General Hospital (369 bedded acute-care Hospital).

(ii) Operation of 5 peripheral dispensaries to ensure better accessibility in the

area of out-patient care to residents.

(iii) Operation of community Health programme to help the surrounding ruralpopulations meet their basic medical needs. Eye Camps, Polio, ScreeningCamps and General Community Health Screening form, part of this

programme. During the year 2003-04, a number of medical camps wereconducted which include a major Opthal Screening Camp for implanting

IOL to selected rural patients with cataract problems.

(iv) Operation of occupational Health services to ensure optimal Health, safety

and well being of employees and first aid care at plant level.

FAMILY WELFARE

14.37. NLC Hospital has been signed out as one of the best medical institutions in the

State for performing sterlisations with zero failures. During the year 2003-2004 as highas 580 sterlisations were performed.

EDUCATION

14.38. The NLC township is teeming with over 34 schools and a college for meeting theeducational needs of children of employees and children from nearby villages. Drawing

support from participation of other institutions, NLC offers quality education with mostof the children making appreciable grades at High School and plus two levels. 18 NLCmanaged schools have also come into the limelight in the recent years for achieving

excellence in the school and college curriculum. NLC has also instituted number ofscholarship scheme to harness the full potential of children.

SPORTS

14.39. The bottom-line equations of NLC include programmes and facilities for thedevelopment of sports among employees as well as students. This goal is best served by

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the development of sports stadium that houses facilities for conducting state and nationallevel tournaments. Schools make best use of these facilities to give equal importance to

sports activities that help the students achieve overall development. The Sports ControlBoard is behind planning sports activities and developing facilities to meet the growing

needs for sports and leisure time games.

CONCERN FOR SOCIAL WELFARE

14.40. NLCs concern for social welfare is highlighted by its commitment to serve the

cause in general and more particularly of physically, mentally and socially handicappedpopulation of Neyveli and beyond through Organisations such as Neyveli HealthPromotion and Social Welfare Society and SNEHA Opportunity School. While the

former upholds the specific needs of physically handicapped and destitute womenthrough rehabilitation programmes the latter offers timely succour to mentally retarded

children in making them useful and productive members of the society. NLC has not onlyprovided infrastructure facilities for the operation of these programmes but moreimportantly extends financial support for their sustained growth.

HUMAN RESOURCE DEVELOPMENT

14.41. Training is the powerful tool which NLC utilises effectively to harness its vasthuman resource potential, manage their career development and plan for enriching their

skills/professions in line with the technological advancement. The training complex withmodern facilities organise various training programmes to make the employees update

their knowledge. The demands for continuing education at shop-floor level are also fullymet. To nourish managerial excellence, executives, professionals and skilled workmenare sent for training outside in premier training institutions in India and abroad. Training

facilities offered by equipment manufacturers are also being utilised before installing newequipment/machinery. Details of training during 20032004 upto March 2004 are

Details April 2003 to March 2004

In-house programme 7363

Deputation training within India 552

Training abroad 16

Total 7931

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ENERGY CONSERVATION

14.42. Separate cell is functioning with adequate staff to continuously monitorconservation of energy in the production units as also service units and township.

Energy conservation measures taken during this year

A. MINES SECTORThe following measures have been taken in respect of both the mines to ensure

energy conservation. Energy Audit was conducted in Mine-II by M/s. MECON and a draft

report was received. Final report expected shortly.

Using of Auxiliary drive for teeth changing during maintenance hours. Cutting of one of the drives during loading near to the Drive Heads.

All old lighting luminaries are being replaced with energy efficientlighting luminaries. Providing timer switches/Photo Volt switches for thecontrol of out door illuminations.

Optimization of conveyor operation with particular reference to idlerunning.

Judicious reduction in the operating hours off GWC pumps. Motivation and Awareness creation among operation personnel.

B. POWER SECTOR

Auxiliary Power consumption was at below 12.00% for TPS-I and atbelow 10.00 % TPS-II.

500W incandescent bulbs were being replaced with 40W tube light fittings

in TPS-I. Timer circuits have been provided for the roof lights in Turbine hall in

TPS-I.C. TOWNSHIP ADMINISTRATION

Running hours of water supply pumps reduced by 1 Hrs./Day. Unnecessary burning of streetlights has been controlled by streetlight

timers. Tube light fittings are being replaced with C.F.L. fittings.

D. TRAINING & DEVELOPMENT

In house training programme on Energy Conservation was conducted to

create awareness among employees on energy conservation.

E-GOVERNANCE

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1. LOA for the implementation of IVDFN (Integrated Voice and Data FiberOptic Network) has been awarded to M/s. CMC Ltd., on 18.06.2003. The

project has started and the laying of Fiber Optic cable has been completed.Network switches have been supplied by the firm. Project has to be

implemented in 10 months from the date of placing the order. Network

switches are being installed in various locations.2. Intranet Application: Intranet web based applications like leave

regularization, online availability of various application forms, BulletinBoard, Employees bio-data etc has been implemented utilizing the LAN

connectivity established in the Corporate Office. In the ongoing IVDFNproject the above facilities will be extended to all the units and offices inNLC. Further other group ware applications like Work Flow. Email

Facilities for NLC officials etc will be implemented in the same project.URS (User Requirement Specification) for the work flow application has

been finalised. E-mail server has been received and being tested.

3. Actions have been taken for the implementation of LAN in TPS-I, TPS-IIand TPS-I Expansion and also in GH & TA. In the consolidated purchase

of Computer, Servers and Network Components and implementation ofLocal Networks, which is about to be finalized, the formations of the

above LANs are included. Purchase order is being placed.

4. Online Integrated Material Management System: The purchase orderhas been already placed on IIT, Kharagpur for the Application Software

Development and Implementation of OLIMMS covering Indenting,Material control, Stock Accounting, Issues and purchase co-ordination.

This comprises of 2 phase involving 5 major activities phase-1 iscompleted in full. The software development is in progress. Purchase

order is placed for the procurement of Hardware for the above project.This project will be implemented before May 2004. The supply,installation and commissioning of all the hardware items are in progress.

5. Implementation of Attendance Monitoring System: Purchase orderwas placed on M/s. CMS Ltd., for the implementation of ComputerizedPunching and Attendance Monitoring System in all the units of NLC. The

card readers had been installed in all locations of various units. Theattendance Monitoring System has been implemented successfully in all

Industrial and Service Units and offices in NLC during January2004Central Server implementation was tested.

6. Implementation of Online System: Online system for FinancialAccounting is implemented. Online Payroll has been implemented fromApril 2002. Orders have been placed with M/s. DDE ORG on 14.05.2002

for the development of Rent Accounting system, Sales Accounting Systemand AMC Systems. The development work is in progress. The softwaremodule development for sales accounting & AMC is in progress.

AWARDS

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14.43. Neyveli Lignite Corporation Ltd., received the Human Resource Development

National Award - 2002 for the best training practice issued by National Power TrainingInstitute. New Delhi on 5th December 2003.

MOU RANKING

14.44. NLC is a MOU signing PSU and its MOU rating for the year 2002-2003 isVery Good.

14.45. GENERAL

Parliamentary Committee on the Welfare of SC/ST visited Chennai on 13th June,2003 and held discussion with NLC officials.

An MOU was signed on 19th June,2003 at Chennai between NLC andTNEB in the presence of Honble Chief Minister of Tamil Nadu and theHonble Minister for Coal, Govt. of India for setting up of a 1000 MW

coal based Thermal Power Plant as a joint venture at Tuticorin. Shri P.K. Mishra, I.A.S., Secretary (Coal) visited Neyveli on 10th Aug.03

and inaugurated the 2nd Unit (210 MW) of Thermal Power Station-IExpansion. Project. The Secretary (Coal) has also planted saplings in theMine-IA area, under Mass plantation Programme.

Sub-Committee-III for Ministry of Heavy Industries & Public Enterprisesof the Parliamentary Standing Committee on Industry visited Chennai on

21st September 2003 and held discussion with NLC Officials on MOU

performance and professionalisation of Boards. The Companys 47th Annual General Meeting was held at Chennai on 29th

September 2003. A Dividend of 14% was declared to the shareholders forthe year 2002-2003.

A Committee on Safety in Coal Mines visited Chennai on 20th October 2003and held discussion with NLC officials.

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