Company Facts - Neyveli Lignite Registered Address "Neyveli House", No 135, Periyar EVR High Road, Chennai (Madras)

Tamil Nadu 600010 Tel : 044-28364617 Fax : 044-28255499 Email : investors@nlcindia.com Website : http://www.nlcindia.com Registrars Integrated Enterprises (India) Ltd. Kences Towers, 2nd Floor No. 1, Ramakrishna Street North Usman Road T Nagar Tel : 28140801, 02, 03 Fax : 28142479 Email : Yesbalu@iepindia.com Website : www.iepindia.com Management - Neyveli Lignite A R Ansari Chairman and Managing director P Babu Rao Director B Surender Mohan Director R Kandasamy Additional Director K Sekar Director (Finance) Rajeev Ranjan Additional Director Alok Perti Additional Director

POWER SECTOR SCENARIO IN INDIA Power being a critically important ingredient for the rapid growth of the economy for achieving GDP growth rate of 8%.Power sector has set a challenge as well as opportunities for the entire energy value chain in India. It is one of the most critical component for Indian infrastructure. Quality power at competitive rate for empowering Indian industry. India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. While the per capita power consumption stood at 612 kWH. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years.On 31 march 2010 Indias installed power Generation capacity was at 156092.91 MW out of which installed capacity of total installed capacity of Thermal Power is 93,398.84 MW which is 64.6% Hydro (Renewable) 36,863.40 which is 24.7% Nuclear 4,560.00 is 2.9% Renewable Energy Sources(RES) 15,521.11 which is 7.7%
( Include SHP, BG, BP, U&I and Wind Energy )

LIGNITE Often referred to as brown coal relatively with low carbon content and high moisture content when compared to coal. Lignite beds occur at depths of 55 to 76 meters. It is considered the lowest rank of coal and it is used almost exclusively as a fuel for steamelectric power generation. Up to 50% of Greece's electricity and 11% of Germany's comes from lignite power plants.

Photo:- Lignite ( Brown Coal)

Lignite is brownish-black in color and has a carbon content of around 25-35%, a high inherent moisture content sometimes as high as 66%, and an ash content ranging from 6% to 19% compared with 6% to 12% for bituminous coal.The heat content of lignite ranges from 10 to 20 MJ/kg (9 to 17 million Btu per short ton) on a moist, mineral-matter-free basis. The heat content of lignite consumed in the United States averages 13 million Btu/ton (15 MJ/kg), on the as-received basis (i.e., containing both inherent moisture and mineral matter). When reacted with quaternary amine, amine treated lignite (ATL) forms. ATL is used in drilling mud to reduce fluid loss. Lignite has a high content of volatile matter which makes it easier to convert into gas and liquid petroleum products than higher ranking coals. However, its high moisture content and susceptibility to spontaneous combustion can cause problems in transportation and storage. Because of its low energy density, brown coal is inefficient to transport and is not traded extensively on the world market compared with higher coal grades. It is often burned in power stations constructed very close to any mines, such as in Australia's Latrobe Valley , Indias Neyveli and Luminant's Monticello plant in Texas. Lignite is geologically younger than higher-grade coals, originating mainly in the Tertiary period.

ABOUT NEYVELI LIGNITE

Neyveli Lignite Corporation Ltd. (NLC) is India's largest lignite mining company, and is also one of the country's leading power generation companies. The company operates three open cast mines in Neyveli producing some 24 million tons of high-grade lignite per year. The lignite mined at Neyveli varies in colour from brown to dark brown and has a non-bonded granular structure. Microscopic studies of this sections prepared from bulk samples of lignite indicate that the fuel is composed of a wide variety of plant ingradients, mainly of coniferous nature.

Photo:- Bucket Wheel Excavator at Neyveli Fields

Quality of Lignite at Neyveli :Lignite contains 65-70% of carbon, 20-25% of oxygen, about 5% of hydrogen and small amounts of nitrogen and sulphur. The

average calorific value of lignite is 2400 K.cal/Kg. It cannot be compared favourably with the high calorific value of pure coal. Yet lignite has an advantage of being free burning (non coking), of having low ash and of giving rapid and complete combustion. Since the volatile matter is usually high, lignite burns readily. Air dried lignite is quite suitable for direct burning. For high capacity boilers lignite can be burnt in the pulverized form.

Some of the unique characteristic features of the Neyveli Lignite Mine are:
Occurrent of Ground water Aquifer below lignite bed: Huge reservoir of ground water occurs below the entire lignite bed, exerting an upward pressure of 6 to 8 kg/cm2. Unless this water pressure is reduced before mining, it will burst the lignite seam and flood the Mines. The problem is solved by selective bore wells formation and pumping to depressurise the water pressure to the safe mining condition. The water is being used for the TPS water requirement. The water level is continuously monitored through observation wells for proper ground water management.

Photo:- Neyveli Lignite Plant

Hard overburden strata:

The highly consolidated strata consists mainly of Cuddalore strand stone which is hard and abrasive in nature. The Bucket wheel used for handling large volume of overburdens faced problems due to the hard strata and uses overcome by carrying out suitable modification in the bucket wheel teeth and by instituting a systematic drilling and shatter blasting programme. Neyveli Lignites Mine I, demarcated over an area of 26.69 sq.kms. with a reserve of 365 million tones. Mine-I is situated on the northern part of the field adjacent to the Neyveli Township. This mine has a production capacity of 10.5 million tones of lignite per annum and feeds lignite to the 600 MW capacity of First Thermal Power Station and 420MW Thermal Power Station I Expansion. The lignite seam was first exposed in August 1961 and regular mining of lignite commenced in May 1962. German Excavation technology in opencast mining, using Bucket Wheel Excavators, Conveyors and Spreaders is used in this Mine for the first time in India. While overburden thickness varies from 50-95 metres, lignite thickness varies from 10 to 23 metres. The overburden to lignite ratio in this mine is 5.5 to 5 c.metre to one time (about 11 times of overburden is to be removed for mining one tonne of lignite). Neyveli Lignites Mine-IA with a capacity of 3 million tonnes of lignite per annum. The tiny mine with a reserve of 120 million tonnes is spread over an area of 11.6 sq.kms. The excavation of overburden commenced on 30 th July 2001 and the lignite production commenced on 30 th March 2003. The Mine-IA project is one of the mega projects of NLC that has been completed without cost and time over run. Neyveli Lignites Mine-II- This Mine is located 5 kms south of Mine-I, spread over an area of 26 sq.kms. with 390 million tonnes reserves. The initial mine cut was started in April 1981. The lignite seam was first exposed in September 1984 and regular lignite mining commenced from March 1985. The overburden thickness varies from 50-100 m and the lignite thickness varies from 8 to 22m. The average overburden to lignite ratio is 5m3 to a tonne. The lignite production in this mine meet the fuel requirements of Thermal Power Station-II. The method of mining and equipment used are similar to that of Mine-I.

Storm Water Management:

Neyveli mines are located in predominantly monsoonic and cyclonic area where the average rainfall in a year is about 1200 mm and the wind velocity goes up to 160 km per hour Heavy rain flood the open pit bottoms and these difficulties are met by evacuating the flood water through float pump mounted on floating pontoons. Intermediate booster stations pump out the storm water to the surface level.

MINES
The main core activity of NLC is Lignite Excavation and power generation using lignite excavated. NLC is having three lignite mines named as Mine I, Mine II and Mine IA. Also raw lignite is being sold to small scale industries to use it as fuel in their production activities.

The main constituent units of the Company are Unit Lignite Mine I

Capacity

10.50 MTPA*

Mine I A Mine II Barsingsar Lignite Mine, Rajasthan Total Power TPS I TPS II TPS I Expansion Total

3.00 MTPA 15.00 MTPA 2.10 MTPA 30.60 MTPA 600 MW 1470 MW 420 MW 2490 MW

THERMAL POWER STATION I

Some of the special features of this power station are : First Lignite Power Station in south East Asia. First pit head Power Station in India. First Power Station in India with Soviet Collaboration. First largest Thermal Power Station in South India.

THERMAL POWER STATION II

This power station has seen a series of technological innovations such as: Largest lignite fired thermal power station in Asia, First and tallest tower type boiler in the country (92.7m height), First software based burner management system First hydrogen/hydrogen cooled generator of this size. First boiler to be cleaned by hydro fluoric acid. Steel structures used for powerhouse building 124 metres natural drought cooling towers 220 metres tall chimney for wide dispersal of gases Distributed digital control system (DDC) and data acquisition system (DAS) for control an instrumentation.

THERMAL POWER STATION I Expansion

A tremendous Achievement by TPS-1 Expansion Unit

The Station Plant Load Factor (PLF) for the Year 2008-2009 is 84.96 % which is the highest for any Lignite Fired Power Station. The operating PLF for the year 2008-2009 is 96.69 % 100 % Fly Ash conveyed to Silo for the Month of March 2005 by Dense Phase Conveying Technology and Slurry Disposed to Ash Pond was NIL

Production Performance for the year 2009-10 :

The year 2009-10 has been a successful and eventful year for Neyveli Lignite Corporation limited. The company has scaled new heights in its Physical performance ever since its inception in the areas of lignite mining and Power generation. During the period April 2009- March 2010 all the products exceeded the target and registered a growth compared to the previous year. 2

Production Highlights: The following are the achievements during the year 2009-10.
U

Lignite production from all Mines put together at 223.38 LT is the highest for any year since inception. (previous highest 215.86 LT during 2007-08 ) Total overburden removal from all Mines put together at 1594.25 LMP3P is the highest for any year since inception. (previous highest 1463.44 LMP3 P during 2008-09). Overburden removal from Mine-II at 782.63 LMP3P is the highest for any year since inception. (previous highest 659.64 LMP3 P during 2008-09). Power Generation from all thermal stations put together at 17657.94 MU is the highest for any year since inception. (previous highest 17456.89 MU during 2007-08) Power Generation from TPS-II at 10560.05 MU is the highest for any year since inception. (previous highest 10517.69 MU during 2007-08) Export of Power from all thermal stations put together at 14827.50 MU is the highest for any year since inception. (previous highest 14775.84 MU during 2007-08)

The above achievement is without any capacity addition. Production targets for the year 2010 11 For the year 2010-11, a target of 1581 LMP3P of overburden removal, 241.4 LT of Lignite excavation and 18758 Million units of Power generation have been fixed. The above targets are higher by 8.0 % for lignite and 6.20 % for power generation 3

against the actuals of previous year 2009-10.The Production performance of the current year (2010-11 ) is also encouraging. Growth in Financial Performance: Sales turnover for the year 2009-10 stands at Rs.4121.03 crore as compared to Rs.3354.91crore in the previous year 2008-09 registering a growth of 22.8%. Profit before tax stands at Rs.1604.86 crore for the year 2009-10 as compared to Rs 1046.01 crore in the previous year 2008-09 [53.4 % higher]. Profit after tax stands at Rs.1247.46 crore for the year 2009-10 as compared to Rs. 821.09 crore in the previous year 2008-09 registering a growth of 51.9%. The profits have been driven mainly from the better capacity utilization during the year under review. An interim dividend of 10% for 2009-10 was declared and an amount of Rs 167.77 crores was paid on 06.04.2010. The Board of Directors of NLC had recommended a final dividend of 10% with a total outflow of Rs.335.54 Crore for the year 2009-10. Projects Under Construction : Mine-II Expansion Project increasing the capacity of Mine-II from 10.5 MTPA to 15.0 MTPA of lignite, attained full Lignite Production capacity on 12.03.2010 and was dedicated to the Nation by the Honble Union Minister of State for Coal Shri Sriprakash Jaiswal on 05.04.2010 at Neyveli. Barsingsar Mine Project ( 2.1 MTPA of Lignite ) at Rajasthan attained full Production capacity on 31.01.2010 Thereby the installed Mining capacity has increased to 30.6 MTPA of Lignite from 24.0 MTPA. The first Unit of 125 MW of Barsingsar Thermal Power Project, was Synchronised on 27.10.2009. Erection and pre-commissioning activities are in full swing in TPS-II Expansion project (2 X 250 MW of Power) and Barsingsar Thermal Power Project (2X125 MW of Power) and are expected to be commissioned during 2010 / 2011. NLC Tamilnadu power Limited (NTPL),(1000 MW Coal based Power project at Thoothukudi) - a joint venture Company by NLC and TNEB is under implementation . GOI had sanctioned the project in May 2008 and orders 4

have been placed for Main Plant package & other major packages. This project is scheduled to be commissioned during 2012-13. NLC Board has approved the implementation of a 50 MW Wind energy based power project and tendering activities for the same is in progress. By implementing the above projects, the Power generating capacity of NLC will be increased from 2490 Mega Watt to 4290 Mega Watt . Major events The long pending issues on land acquisition have been amicably settled and about 320 Hectares of land has been taken possession during the year 2009-10, thus ensuring land availability for mining operations of 5 to 7 years. The draft PIB memo along with the Feasibility reports for Bithnok Lignite Mine-cum-Power Project (2.25 MTPA Lignite Mine with linked 250 MW Power Plant) and NLCs New Thermal Power Project at Neyveli (2 X 500 MW) in lieu of TPS-I were submitted to Ministry of Coal in October 2009 and are in the process of sanction. Awards Some of the recent awards received by NLC are : Dalal street investment journal award for PSUs in the category of PSU with highest market capitalization for the year 2010. NLC has been awarded by the District TB centre (Tamilnadu state Government) for making the largest donation towards eradication of TB for the year 2009 . CMD/NLC has been awarded with the Best Chief Executive Award for his outstanding achievements by the Indian Mineral Industry Journal on 11PthP May 2010 at Bhubaneshwar.

FUTURE PLANS
NLC is poised for a rapid growth in the mining and power generation capacity and is expanding its activities not only at Neyveli but also in other parts of the country. NLC is also spreading its wings in New projects with fuels other than Lignite. The following projects are proposed to be taken up by NLC during the 11PthP /12PthP Plan period : Government of Uttar Pradesh invited NLC during February 2008 to setup a Coal based power project at Uttar Pradesh (2000 MW Power Plant) to meet the growing power demand, as NLC is a pioneer in power generation. NLC agreed the proposal and discussion with UP Government is in advanced stage. Hadla Lignite Mine-cum-Power Project (Barsingsar Extension) (2.5 MTPA Lignite Mine with linked 250 MW Power Plant) Jayamkondam Lignite Mine cum Power Project ( 13.5 MTPA Lignite Mine with linked 1600 MW Power Plant) Valia Lignite Mine cum Power Project at Gujarat ( 8 MTPA Lignite Mine with linked 1000 MW Power Plant) A 15 MTPA Coal Mine under Joint Venture with MCL and a 2000 MW Power Plant in Ib valley in Orissa. Mine III linked with TPS III ( 8 MTPA Lignite Mine and 1000 MW Power Plant) at Neyveli. Coal based power project at Jharkand (1000 MW Power Plant). NLC also proposes to Venture in Power Projects based on renewable energy (wind power & solar Power) and hydro power. Fund requirement of the above projects will be met from internal accruals and borrowings. Upon successful completion of the above projects, NLCs mining capacity will be increased to 79.85 MTPA, (both Lignite and Coal) and Power generation capacity will be raised to 13790 MW by the end of 12PthP Plan.

Neyveli Lignites Focus on Research & Development

Centre for Applied Research and Development (CARD) is the In-house Research and Development Centre of Neyveli Lignite Corporation Limited and recognized by the Department of Science and Technology since 1975, it is continiously pursuing research and development programmes in the area of diversified use of lignite, waste utilization, soil reclamation and much more. Primarily and R & D Unit CARD has service facilities with facilities for monitoring of air, water, materialogy and soil and also caters to various testing and analytical needs of various industrial units of Neyveli Lignite Corporation. Abient and quality management is done throughout the year at eight diffferent locations in and around neyveli. Effluents from thermal power stations and mine outlets are regularly analysed. Periodical survey of respirable dust, illumination, noise and vibration are also being carried out in mines and thermal power stations.

Photo:- Centre for Applied Research and Development (CARD) M/s. UNIDO has funded a project to establish Lignite Energy Research Institute (LERI) at Neyveli which will be capable of providing technical support to ensure the latest and most appropriate technologies for minimising negative environmental effects. CARD is carrying out various R&D works on Waste Land Reclamation, Solid Waste Utilisation, By-Products Utilisation of various industrial units, Diversification product development etc. CARD has also taken up various joint projects in association with CSIR Laboratories, Universitites, other Educational Institutions and other Public Sectors. The joint projects submitted were funded by Ministry of Coal. CARD is producing an organic Humic Acid (Potassium Humate) extracted from lignite. Click here to view the Pamphlet, which consists the details of humic acid, specification, cost, payment mode and route map to CARD.

Industries Where Neyveli Lignite Corporation Limited Competes

Metals & Mining Energy & Utilities Electric Utilities Fossil Fuel Power Generation Coal Mining & Processing

COMPETITORS

PE RATIO NTPC Power Grid Corp Reliance Power NHPC Tata Power Reliance Infra Adani Power Neyveli Lignite JSW Energy Torrent Power 19.00 21.8 56.7 17.0 15.0 23.4 153.3 20.10 23.4 18.5

Market Cap. (Rs. cr.) 165,115.42 44,087.61 37,869.44 35,672.15 29,899.53 27,056.94 26,149.52 25,115.31 19,820.06 15,524.65

Neyveli Lignite Annual Results

Mar ' 10 Sales Other Income Stock Adjustment Raw Material Power And Fuel Employee Expenses Excise Admin And Selling Expenses Research And Devlopment Expenses Expenses Capitalised Other Expeses Provisions Made Operating Profit Interest Gross Profit Depreciation Taxation Net Profit / Loss Extra Ordinary Item Prior Year Adjustments Equity Capital Equity Dividend Rate Agg.Of Non-Prom. Shares (in Lacs) Agg.Of Non PromotoHolding(%) OPM(%) GPM(%) NPM(%) EPS (in Rs.) 4,121.03 598.73 30.20 0.00 0.00 1,696.53 0.00 0.00 0.00 0.00 1,100.70 0.00 1,293.60 33.58 1,858.75 253.89 357.40 1,247.46 0.00 0.00 1,677.71 0.00 1,080.70 6.44 31.39 39.38 26.43 7.44 Mar ' 09 3,354.91 664.98 -55.81 0.00 0.00 986.42 0.00 0.00 0.00 0.00 919.05 0.00 1,505.25 8.15 2,162.08 424.50 224.92 821.09 -691.57 0.00 1,677.71 0.00 1,080.70 6.44 44.86 53.78 20.42 4.89 Mar ' 08 2,981.65 656.42 44.97 0.00 0.00 804.12 0.00 0.00 0.00 0.00 830.81 0.00 1,301.75 8.80 1,949.37 454.49 319.72 1,104.23 -70.93 -2.66 1,677.71 0.00 1,080.70 6.44 43.65 53.58 30.35 6.58 Mar ' 07 2,108.11 597.08 -38.58 456.98 0.00 557.49 0.00 0.00 0.00 0.00 364.02 0.00 768.20 43.28 1,322.00 447.34 307.88 566.78 0.00 0.00 1,677.71 0.00 1,080.70 6.44 36.44 48.86 20.95 3.38 Mar ' 06 2,201.41 501.02 2.84 0.00 103.71 512.19 0.00 0.00 0.00 0.00 818.59 0.00 764.08 54.28 1,210.82 349.45 285.04 702.35 126.02 0.00 1,677.71 20.00 1,080.70 6.44 34.70 44.80 25.98 4.19

SHAREHOLDING

Statement showing Shareholding Pattern

Sr. No

Category of shareholder

Number of shareholders

Total number of shares

Number of shares held in de materialized form

Total shareholding as a percentage of total number of shares % of shares (A+B) % of shares (A+B+C)

Shares pledged or otherwise encumbered Number of shares % No. of shares

(A) Shareholding of Promoter and Promoter Group (1) Indian (a) (b) Individuals/ Hindu Undivided Family Central Government/ State Government(s) 0 3 0 0 0 1569639300 0 0 0 0 0 0 0.00 93.56 0.00 0.00 0.00 93.56 0.00 0.00 0 0 0 0 0 0 0 0

(c) Bodies Corporate (d) Financial Institutions/ Banks

(e) Any Other (specify) Directors & Their Relatives Sub-Total (A)(1) (2) Foreign Individuals (Non(a) Resident Individuals/ Foreign Individuals) (b) Bodies Corporate (c) Institutions (d) Any Other (specify) 0 Sub-Total (A)(2) Total Shareholding of Promoter and Promoter Group (A)= (A)(1)+(A)(2) (B) Public shareholding (1) Institutions (a) Mutual Funds/ UTI (b) (c) Financial Institutions/ Banks Central Government/ State Government(s) 18 14 0 0 16 41 0 1428565 259175 0 0 72042209 4100415 0 1377065 256475 0 0 72042209 4100415 0 0.09 0.02 0.00 0.00 4.29 0.24 0.00 0.09 0.02 0.00 0.00 4.29 0.24 0.00 NA NA NA NA NA NA NA NA NA NA NA NA NA NA 0 0 0 0 0 0 0.00 0 0.00 0 0 0 0.00 0 0 0 0 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 0 0 6 9 600 1569639900 0 0 0.00 93.56 0.00 93.56 0 0 0 0.00

1569639900

93.56

93.56

0.00

(d) Venture Capital Funds (e) Insurance Companies (f) Foreign Institutional Investors

(g) Foreign Venture

Capital Investors (h) Any Other (specify) 0 Sub-Total (B)(1) (2) Non-institutions (a) Bodies Corporate (b) Individuals Individual shareholders holding nominal share capital up to Rs. 1 lakh Individual shareholders holding nominal share capital in excess of Rs. 1 lakh 1409 5838949 5836449 0.35 0.35 NA NA 89 0 77830364 0 77776164 0 4.64 0 4.64 0 NA 0 NA

(i)

109611

20783884

18381377

1.24

1.24

NA

NA

(ii)

70

1595978

1407978

0.10

0.10

NA

NA

(c) Any Other (specify) Trusts Nri Clearing Members Sub-Total(B)(2) Total Public Shareholding (B)= (B)(1)+(B)(2) TOTAL(A)+(B) Shares held by Custodians and (C) against which Depository Receipts have been issued GRAND TOTAL (A)+(B)+(C) DIVIDEND HISTROY Year 200903 200803 200703 200603 200503 200403 200303 200203 200103 200003 Dividend (%) 20 20 12 20 20 14 14 13.5 10 7 16 1213 326 112645 112734 112743 51780 907536 1061209 30239336 108069700 1677709600 51780 907536 1061209 27646329 105422493 105422493 0.00 0.05 0.06 1.81 6.45 100.00 0.00 0.05 0.06 1.81 6.45 100.00 NA NA NA NA NA 0 NA NA NA NA NA 0.00

0.00

NA

NA

112743

1677709600

105422493

100.00

0.00

Neyveli Lignite Capex Plans

Neyveli Lignite plans Rs 12,000 crore capex

Neyveli Lignite Corporation (NLC), a mini-navaratna and a central public sector undertaking (PSU), is targeting to double its power generation capacity to 5,0-00MW by 2012. To achieve this goal, the company has earmarked an investment of Rs 10,000 crore-Rs 12,000 crore this year in capital expenditure. NLC, which is also keen to diversify into renewable energy and related sectors, will soon scout for coalfields in Africa, especially Mozambique, to strengthen its coal base for the future requirements of its coal-based power stations. We have a capacity of about 2,400MW2,500MW at present. Our goal is at least to double this capacity to 5,000MW by 2012. Besides tying up for new coal-based projects, we are also keen to move forward on wind, hydro and solar energy segments, NLC chairman and managing director, A R Ansari, told the media, at the end of the companys AGM here on Thursday. A bulk of the new capacity will still come from coal-based thermal stations that the company is planning to set up across a few Indian states. These include a joint venture (JV) with TNEB, a joint venture with Uttar Pra-desh Rajya Vidyut Utpadan Nigam for a 2,000MW plant as well as a 50:50 JV with a Coal India subsidiary for a 1,000MW plant. NLC is keen to move on its own for new power projects in the renewable sector including wind, hydro and solar. We will start off with 50 MW project in wind energy in southern Tamil Nadu, between Tuticorin and Kanyakumari districts, and then increase it to 200 MW, Ansari said. However, the company has put off plans to enter the nuclear sector. We want to first stabilise with our diversification plans, before we can look at nuclear energy-based power projects, he said. Ansari said, NLC would be exploring options to acquire coal blocks in Mozambique in the African continent by floating a subsidiary. Earlier, while addressing shareholders, Ansari said that the company is also not averse to entering the cement sector

Neyveli Lignites Details of Credit Rating, Asset Coverage, Debt-Equity Ratio etc., for the year ended 31 March 2010
CREDIT RATING:- ICRA LAAA STABLE. ASSET COVER:- 5378.94 CRORES (PROVISIONAL EQUITY RATL) DEBT EQUITY RATIO FOR 2009-2010:- 39.08% PREVIOUS DUE DATE FOR PAYMENT OF INTEREST /PRINCIPAL & WHETHER THE SAME HAS BEEN PAID OR NOT. :- 23-1-2010 WAS HE FIRST DUE DATE FOR PAYMENT OF INTEREST AND THE SAME WAS PAID ON 23-1-2010. NEXT DUE DATE FOR THE PAYMENT OF INTEREST /PRINCIPAL:- THE NEXT DUE DATE FOR PAYMENT OF INTEREST FALLS ON 23-1-2019.

COMPANY NEWS
5 June-2010 - Neyveli Lignite commissions 1st unit of Barsinagar power plant:-

State-owned Neyveli Lignite Corp today commissioned its lignite-based power plant at Barsingar, in Rajasthan.Neyveli Lignite Corporation (NLC) today declared the first 125-MW unit of the 250 (2x125) MW project commissioned, which means that power generation can now start.The barsinger thermal plant in Rajasthan has become the Neyveli lignite Corporations first plant to have become functional outside Neyveli. 1-June-2010-Neyveli Lignite Corporation (NLC) announced its plans to raise its power generation capacity to 4,290 mega watt (Mw) and to acquire coal mines in Indonesia and South Africa. Currently the company which has a capacity of 2,490 Mw will invest Rs 9,900 crore for the proposed capacity expansion. Owing to the lack of co-operation from Bharat Heavy Electrical Limited (BHEL) and the state government, the corporation's major power project is being delayed by two years. "So is the case with another project in Orissa," a senior official of NLC said. The corporation is planning to establish a 2,000 Mw power plant between Tuticorin and Chennai. "We have asked the state government to allocate land for setting up the power plant. For this we would require around 2,000 acres of land." A R Ansari, chairman-cum-managing director, Neyveli said. He was talking to the reporters after announcing the company's results. It has also proposed to expand the plant in Rajasthan, which will go on stream with phase I of 125 Mw, by adding another 500 Mw. "Phase I 125 Mw will go on stream in June this year, another 125 Mw in July, we are also planning to add another 500 Mw in Rajasthan," Ansari said. With a total capacity of 50 Mw, the corporation is also planning to set up wind farms in the districts of Tiruneveli and Theni in Tamil Nadu, he said adding that the first unit is likely to go on stream in October or November this year. It has also proposed the company's first solar power plant in Neyveli with a capacity of 25 Mw. Referring to the coal mine acquisitions in Indonesia, Ansari said, "We are presently doing the due diligence to acquire 2.5 million tonnes of resource (coal mine). The acquisition cost of this would be around Rs 400-500 crore". The company is also looking at mines in South Africa. "To add every 1,000 mega watt, we require 600 million tonnes of coal, we want to do all the mine acquisitions on our own." said Ansari. "By end of 12th Five Year Plan we will increase our power generation capacity to 4,290 mega watt (Mw) from the present 2,490 Mw," said Ansari. Ansari said that the company forecasts 6.4 per cent growth in production and an 8 per cent growth in power generation during 2010-11. For the year ended March 2010, the corporation recorded a 22.8 per cent growth in sales in 2009-10 at Rs 4,121.03 crore against Rs 3,354.91 crore in 2008-09. The company's net profit in 2009-10 grew by 51.9 per cent to Rs 1,247.46 crore from Rs 821.09 crore. 28-May-2010-Neyveli Lignite Corporation (NLC) said that it has reported its best ever profit since its business has started. The profit of the company stood at Rs 1,274.4 crore and added that in order to meet its future power generation requirements it is looking out for coal fields in overseas markets. On the other hand the chairman of NLC Mr. A R Ansari said that the company is setting up a thermal plant at Tuticorin in joint venture with the Tamil Nadu Electricity Board and has identified some coal fields in Indonesia for its joint venture. The chairman also said that beside this it is exploring coal fields in South Africa which has unexploited, good coal reserves. Mr. Ansari further said that the consolidated net profit of the company rose by a full 52 per cent to Rs 1,247.4 crore for the year ended March 2010, over the same period last year, which is an all time high since its inception 60 years ago. Meanwhile NLC's total income rose from Rs 4,019.8 crore in the previous fiscal to Rs 4,719.7 crore during the fiscal up, which was also the highest in the history of NLC. Moreover the company board has proposed a dividend of Rs 1 per share, Mr. Ansari said. On top of this the company has also recorded its highest power production of 17,658 million units and has sold 14,827.50 million units, he said. The chairman further said the company is planning a 2,500-Mw thermal plant in coastal Tamil Nadu between Tuticorin and Chennai. It has also sought Centre's permission to enter ultra mega power plants space, he added. Beside these projects the company has also signed an MoU with Uttar Pradesh to set up a 2,000 Mw thermal plant.

However the first unit of the 125 Mw Barsingar plant at Rajastan would be commissioned next month and the second unit in July, he said. Whereas the second thermal station at Neyveli will be commissioned during the current fiscal, Mr.Ansari added. 28-MAY-2010- NLC posts record profit in FY10; keen to buy coal fields. Central public sector undertaking Neyveli Lignite Corporation (NLC) said that it has reported its best ever profit since its business has started. The profit of the company stood at Rs 1,274.4 crore and added that in order to meet its future power generation requirements it is looking out for coal fields in overseas markets. On the other hand the chairman of NLC Mr. A R Ansari said that the company is setting up a thermal plant at Tuticorin in joint venture with the Tamil Nadu Electricity Board and has identified some coal fields in Indonesia for its joint venture. The chairman also said that beside this it is exploring coal fields in South Africa which has unexploited, good coal reserves. Mr. Ansari further said that the consolidated net profit of the company rose by a full 52 per cent to Rs 1,247.4 crore for the year ended March 2010, over the same period last year, which is an all time high since its inception 60 years ago. Meanwhile NLC's total income rose from Rs 4,019.8 crore in the previous fiscal to Rs 4,719.7 crore during the fiscal up, which was also the highest in the history of NLC. Moreover the company board has proposed a dividend of Rs 1 per share, Mr. Ansari said. On top of this the company has also recorded its highest power production of 17,658 million units and has sold 14,827.50 million units, he said. The chairman further said the company is planning a 2,500-Mw thermal plant in coastal Tamil Nadu between Tuticorin and Chennai. It has also sought Centre's permission to enter ultra mega power plants space, he added. Beside these projects the company has also signed an MoU with Uttar Pradesh to set up a 2,000 Mw thermal plant. However the first unit of the 125 Mw Barsingar plant at Rajastan would be commissioned next month and the second unit in July, he said. Whereas the second thermal station at Neyveli will be commissioned during the current fiscal, Mr.Ansari added. 27-MAY-2010:- Power generating capacity of NLC will be increased from 2490 Mega Watt to 4290 Mega Watt .
Neyveli Lignite Corporation (NLC) announced its plans to raise its power generation capacity to 4,290 mega watt (Mw) and to acquire coal mines in Indonesia and South Africa. Currently the company which has a capacity of 2,490 Mw will invest Rs 9,900 crore for the proposed capacity expansion. The corporation is planning to establish a 2,000 Mw power plant between Tuticorin and Chennai. "We have asked the state government to allocate land for setting up the power plant. For this we would require around 2,000 acres of land." A R Ansari, chairman-cummanaging director, Neyveli said. He was talking to the reporters after announcing the company's results. It has also proposed to expand the plant in Rajasthan, which will go on stream with phase I of 125 Mw, by adding another 500 Mw. "Phase I 125 Mw will go on stream in June this year, another 125 Mw in July, we are also planning to add another 500 Mw in Rajasthan," Ansari said. With a total capacity of 50 Mw, the corporation is also planning to set up wind farms in the districts of Tiruneveli and Theni in Tamil Nadu, he said adding that the first unit is likely to go on stream in October or November this year. It has also proposed the company's first solar power plant in Neyveli with a capacity of 25 Mw. Referring to the coal mine acquisitions in Indonesia, Ansari said, "We are presently doing the due diligence to acquire 2.5 million tonnes of resource (coal mine). The acquisition cost of this would be around Rs 400-500 crore". The company is also looking at mines in South Africa. "To add every 1,000 mega watt, we require 600 million tonnes of coal, we want to do all the mine acquisitions on our own." said Ansari. "By end of 12th Five Year Plan we will increase our power generation capacity to 4,290 mega watt (Mw) from the present 2,490 Mw," said Ansari. Ansari said that the company forecasts 6.4 per cent growth in production and an 8 per cent growth in power generation during 2010-11. For the year ended March 2010, the corporation recorded a 22.8 per cent growth in sales in 2009-10 at Rs 4,121.03 crore against Rs 3,354.91 crore in 2008-09. The company's net profit in 2009-10 grew by 51.9 per cent to Rs 1,247.46 crore from Rs 821.09 crore.

NLC green power portfolio to touch 1,700 Mw by 2017 2010-03-23 Public sector mining and power major Neyveli Lignite Corporation (NLC) is harping on green power technology to drive its future growth. The mini ratna plans to generate almost 1,700 Mw under green technologies of the companys total installed capacity of 10,000 Mw by the end of the 12th Five-Year Plan in 2017. "We aim to have 1,000 Mw of hydro power generation capacity, besides 500 Mw and 200 Mw of wind and solar energy capacities respectively by 2017," NLC chairman and managing director (CMD) A R Ansari said at a conference call here. Besides, the company will ramp up its mining capacity from 24 million tonnes at present to 75 million tonnes during 2012-17. At present, NLC operates three thermal power stations with an installed capacity of 2,500 Mw. Further, it is also pursuing other power projects in Gujarat (500 Mw), Rajasthan (1,000 Mw) and Orissa (2,000 Mw). "We are exploring solar energy project in Rajasthan and wind energy project in Gujarat as these states do not have coal deposits," he added. "We are also holding talks with the Uttar Pradesh government for setting up a 2,000 Mw thermal power plant in Kanpur Dehat district with an investment of almost Rs 20,000 crore. The plant will take under 5 years to commission after it is cleared by the state cabinet," he informed. Ansari said the company was ready to offer up to 49 per cent of power to UP from the proposed plant at Kanpur according to the equity participation of NLC and the state government. NLC is scouting for mining properties and thermal projects abroad, especially Indonesia, South Africa and Zimbabwe. OTHER INDUSTRY NEWS
15-year KG gas pact for new power plants likely GERC fixes tariff for bagasse-based power plants Gujarat to set up two more power projects soon Actis to buy into GVK's power business Power tariff to rise by Re 1 a unit GERC fixes tariff for biomass plants India to add 20,359 MW of power in FY11 PTC, Ashmore launch fund for power projects Power ministry to set gas allocation guidelines Nine more solar power projects in Orissa GPPC to set up 1053 MW gas-based power plant at Pipavav GSECL planning to add another 1000 Mw power to its kitty; to setup Greenfield pr India to miss 11th Plan power generation capacity addition target by over 4,500 Gemac, SEPCO III to set up 1320 mw thermal power p Wind energy sector to add 5k Mw capacity by 2015 NTPC-BHEL Power Projects Pvt Ltd targets orders worth Rs 7,000 crore during FY11 Renewable energy sector told to invest in R&D Industry Overview Power transmission losses in FY10 to exceed Rs 45,000 cr ETA Power Generation to launch 13,200 Mw thermal power plant in Tamil Nadu Date 02/06/2010 02/06/2010 01/06/2010 28/05/2010 20/05/2010 19/05/2010 17/05/2010 17/05/2010 11/05/2010 10/05/2010 07/05/2010 06/05/2010 06/05/2010 05/05/2010 05/05/2010 30/04/2010 30/04/2010 29/04/2010 28/04/2010 27/04/2010

Power companies told to import 35 mt of coal Govt looks at investment of $300-bn in power sector in XII Plan KPCL to setup a super critical thermal power plant No plans for new import duty on power equipment: govt UPPCL, Bajaj Hindustan sign MoU for power project First 700 Mw N-power plant to be commissioned in 2015 OERC okays business plan of four power distribution firms Orient Green Power plans IPO, files prospectus with SEBI Power ministry opposes Import duty on power equipment Govt to develop 60 solar energy cities in 11th plan Assocham advocates allowing pvt players in nuclear power generation Govt to add 9,000 Mw wind power capacity by 2012 More fuel allocation for expansion of gas based power plants NSL achieves financial closure for three hydel projects India to see private sector add 50,000 MW power generation capacity in 3 years: Essar plans one of the largest overseas IPO by Indian company; to list $2.5-bn e UAE firm in $545 mn deal with Aditya Solar Power UPPCL hikes power tariffs RBI allows trading in power bonds maturing in 2014, 2015 India's Power sector to be the epicenter of Future growth Govt lines up Rs 84K cr hydro projects in north-east Nuclear power regulator to get more autonomy, even if means amendments in law Gujarat to frame guidelines for solar power lit billboards CERC imposes congestion charge of Rs 5.45 per unit Cabinet okays govt guarantee of Rs 1000 crore for GRIDCO N-power generation to touch 35,000 mw by 2020: AEC chief Plan panel cuts power generation capacity target by 20% Govt to miss target under solar mission: STFI Centre creates fund to promote energy efficiency in states Japanese companies eye Indian power sector No intention to seek FDI in nuclear sector: govt Will add 62,000 MW of powergen capacity by 2012: Govt One per cent increase in civil nuclear energy sector Bhutan to produce hydropower for India Rs 4,437 cr nod for grid-connected solar plants Sarguja UMPP bid to open on March 15: Power secy Power sector grapples with demand-supply mismatch State to purchase 1,000 Mw of power in March Govt begins work on five more mega power projects Power cos to import 48 MT of coal in FY11 CERC's new code by April to tighten grid discipline Only one UMPP this year, says power secy 'India's first pair of 700 MW nuke plants to be ready by 2016' Dhaka, Delhi get moving on power grid connectivity: Govt may give a push to rural electrification in Budget Power units within SEZs can get infrastructure status AP to add 1,300 Mw by July 2013 Power problems for Maharashtra PowerMin's budget outlay slashed by 25% National Power Exchange to be operational by December Industry urges Govt not to hike power tariff One firm can develop only 3 UMPPs: Shinde Industry Overview

27/04/2010 23/04/2010 23/04/2010 23/04/2010 23/04/2010 22/04/2010 21/04/2010 21/04/2010 21/04/2010 20/04/2010 19/04/2010 19/04/2010 19/04/2010 16/04/2010 12/04/2010 09/04/2010 09/04/2010 05/04/2010 01/04/2010 30/03/2010 26/03/2010 25/03/2010 24/03/2010 22/03/2010 22/03/2010 22/03/2010 22/03/2010 19/03/2010 18/03/2010 18/03/2010 18/03/2010 16/03/2010 10/03/2010 09/03/2010 09/03/2010 09/03/2010 08/03/2010 03/03/2010 25/02/2010 25/02/2010 22/02/2010 22/02/2010 19/02/2010 19/02/2010 18/02/2010 17/02/2010 15/02/2010 11/02/2010 10/02/2010 04/02/2010 03/02/2010 01/02/2010 25/01/2010

Power Ministry to review the delay in Projects CESC plans 5,000 Mw hydel power worth Rs 30-35k crore Power consumption set to double by next decade: KPMG survey 'India to have 6,000 MW solar power by 2017' CERC notified renewable energy trade rules Corporate rivals against Dadri power project: ADAG to SC Indosolar aims IPO of Rs 400 crore to fund expansion plans India agrees to supply additional 30 MW power to Nepal CERC issues new trading margin regulations India to have five nuclear energy parks by 2032 PM for creation of Solar Valleys across country Problems in acquiring land may stall UMPP projects Efforts on to allocate land for power plant Fuel shortage continues to haunt thermal power projects Capital expenditure of Rs 20,120-crore projected for upgrade of power units First unit of Hissar power project becomes operational India to promote large capacity N-power parks: Banerjee CERC proposes congestion charge on states Power capacity addition misses target in 2009 Gas supply from KG-D6 basin has improved power supply: govt Impetus to power projects in North-East Power producers may get to sell unused output Incentive scheme likely to draw more FDI in wind power Pune to soon get a Rs 15-cr solar thermal power plant 'Funds for institutes to conduct R&D in renewable energy' Govt to give incentive to wind power producers Govt to invite bids for two mega power projs by Jan

25/01/2010 22/01/2010 20/01/2010 19/01/2010 19/01/2010 19/01/2010 19/01/2010 18/01/2010 13/01/2010 12/01/2010 12/01/2010 08/01/2010 04/01/2010 31/12/2009 30/12/2009 30/12/2009 29/12/2009 28/12/2009 28/12/2009 23/12/2009 23/12/2009 23/12/2009 21/12/2009 21/12/2009 17/12/2009 17/12/2009 15/12/2009

POWER SECTOR FACTS & FIGURES

Region wise Power Supply Position The region wise anticipated annual power supply position for 2010-11 is given in the Table below:

Source :- CEA

ENERGY GENERATION TARGET 2010-2011 Energy Generation Targets The assessment of gross energy generation in the country during the year 2010-11 has been carried-out in CEA taking into consideration the past operation performance of the thermal plant, their vintage, maintenance schedule of the generating units, partial and forced outages and availability of fuel etc. The maintenance schedule of nuclear/ coal/ lignite based thermal power generating stations for the year 2010-11 Category Installed Capacity (MW) Thermal 18755 Hydro 1466 Nuclear 1220 Total 21441 Source :- CEA

TOTAL INSTALLED CAPACITY OF INDIA Generation Grand Total Installed Capacity is 156092.91 MW Thermal Power Current installed capacity of Thermal Power (as of 12/2008) is 93,398.84 MW which is 64.7% of total installed capacity.

Current installed base of Coal Based Thermal Power is 77,458.89 MW which comes to 53.3% of total installed base. Current installed base of Gas Based Thermal Power is 14,734.01 MW which is 10.5% of total installed base. Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9% of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country. Hydro Power India was one of the pioneering countries in establishing hydro-electric power plants. The power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. The installed capacity as of 2008 was approximately 36877.76 The public sector has a predominant share of 97% in this sector. Nuclear Power Currently, seventeen nuclear power reactors produce 4,120.00 MW (2.9% of total installed base). Main article: Nuclear power in India

Renewable Power Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of total installed base with the southern state of Tamil Nadu contributing nearly a third of it (4379.64 MW) largely through wind power.

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Country United States China Japan Russia India Canada Germany France Korea, South Brazil United Kingdom Spain Italy South Africa Australia

Electricity - production (billion kWh) 4,167 3,256 1,195 1,016 665.3 612.6 594.7 570 440 437.3 371 294.3 292.1 264 244.2

Source CIA Factbook Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Country United States China Japan Russia Germany Canada India France Brazil Korea, South United Kingdom Italy Spain South Africa Taiwan Electricity - consumption (billion kWh) 3,892 3,271 1,080 1,003 549.1 530 517.2 480 402.2 385.1 348.5 316.3 276.1 241.4 233

Source CIA World Factbook List of countries by Per Capita electricity consumption Power = Consumption 1,000,000/(365.25 24)/population, where power is in watts and consumption is in MW h/yr.

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Electricity consumption Year of (MW h/yr) Data World 17,109,665,000 2007 United States 3,872,598,000 2008 2007 European Union[5] 2,950,297,000 Country China Japan Russia India Germany Canada France Brazil South Korea United Kingdom Italy Spain South Africa Taiwan (Republic of China) Australia Mexico Ukraine Saudi Arabia Iran 2,834,996,000 1,007,067,000 840,380,000 568,000,000 547,326,000 536,054,000 447,233,000 403,029,000 386,169,000 345,798,000 307,100,000 243,000,000 241,400,000 221,000,000 219,800,000 183,300,000 181,900,000 146,900,000 136,200,000 2007 2007 2007 2007 2007 2007 2007 2005 2007 2007 2005 2005 2007 2006 2005 2005 2006 2005 2005

Source EIA[3] EIA[4] EIA[6] EIA[7] EIA[8] EIA[9] EIA[10] EIA[11] EIA[12] EIA[13] EIA[14] EIA[15] EIA[16] CIA CIA CIA CIA CIA CIA CIA CIA CIA

Population

As of

6,464,750,000 2005 298,213,000 2005 459,387,000 2005 1,315,844,000 2009 128,085,000 2005 143,202,000 2005 1,103,371,000 2005 2009 (CIA 82,329,758 Est.) 32,268,000 2005 60,496,000 2005 186,405,000 2005 47,817,000 2005 59,668,000 2005 58,093,000 2005 43,064,000 47,432,000 22,894,384 20,155,000 107,029,000 46,481,000 24,573,000 69,515,000 2005 2005 2005 2005 2005 2005 2005 2005

Average power per capita (watts per person) 297 1,460 700 277 868 785 50.5 822.22 1,910 851 226 879 667 603 644 581 1,101 1,244 195 446 682 224

POWER SECTOR AT GLANCE INDIA AS ON 30-04-2010

1.Total

Installed Capacity:

Sector State Sector Central Sector Private Sector

Total

MW 79,391.85 50,992.63 29,264.01 1,59,648.49

%age 52.5 34.0 13.5

Fuel

MW

%age

Total Thermal Coal Gas Oil Hydro (Renewable) Nuclear RES** (MNRE) Total

102703.98 84,448.38 17,055.85 1,199.75 36,863.40 4,560.00 15,521.11 1,59,648.49

64.6 53.3 10.5 0.9 24.7 2.9 7.7

Renewable Energy Sources(RES) include SHP, BG, BP, U&I and Wind Energy Source:- Central Electricity Authority

Source:- CEA

BUDGET OF POWER SECTOR The Budget proposal to double allocation for power development would accelerate generation capacity and attract fresh investments into the sector. Finance minister Pranab Mukherjee raised the allocation for the sector to Rs 5,130 crore, from the previous Rs 2,130 crore. With this, the government targets to add over 78,000 megawatts of capacity by 2012. Further, other proposals such as policy reform for fuel linkages and for lowering generation cost for thermal, would ensure timely execution of projects. Thermal project constitute 75% of energy generation. Shortages in coal supply have already resulted in a generation loss of 10.7 billion units of power at various thermal power projects in the country during April-December 2009. The government also has plans to allocate more captive coal mines for the power companies. tax relief on import of equipment used for solar and wind energy would also attract fresh investments into the sector. The Budget proposes to spend Rs 1,000 crore for renewable energy and a separate fund to promote clean energy. India plans to add 20,000 MW of solar energy by 2022.

Hurdles Power Sector is Facing

Levy an import duty on power generation equipment on. Poor quality of delivered coal is a key concern for the user-industries. Only 20% of the total coal produced is washed; the rest is sold on an 'as mined basis', especially the coal that is transported beyond 400 kms.Lack of optimum utilization of existing generation capacity.India is having an abundant coal reservesTransmission and distribution losses, inadequate distribution system lack of skilled workers, inadequate equipment. According to World Resources Institute (WRI), Indias electricity grid has the highest transmission and distribution losses in the world a whopping 27%. Numbers published by various Indian government agencies put that number at 30%, 40% and greater than 40%. This is attributed to technical losses (grids inefficiencies) and theft. By contrast, China apparently loses 8% total power transmission losses. OECD countries transmission and distribution losses are just 7%. Investment needs of the indigenous coal industry are humungous. To ensure that domestic coal mining industry meets the

expectations, the policy makers will have to consider options like inviting private sector partnership in mining with time bound modernization plans and output monitoring mechanisms in place. Employee productivity in Indian coal mines is low compared to that in the US and Australian mines, principally because of usage of outdated technologies. Longwall mining has failed to take off in India owing to absence of appropriate equipment, inadequate infrastructure and lack of training facilities for miners to develop the skills required for longwall mining; In the light of global warming, the industry is facing increasing environmental concerns.

By Aman Jindal