Neyveli Lignite Corpor-ation (NLC), a central public sector mining and power generation unit, plans to set up a 1,000-mw hydro power project in Uttarakhand as part of its diversification plans.

The company board has given its in-principle nod to get into wind and hydro-power generation. “We had discussed with the Uttarakhand government to set up the hydro power project as the state offers better opportunities than Himachal Pradesh and Jammu and Kashmir.

The government has given in-principle approval for the hydel project, which may cost over Rs 6,000 crore,” said NLC chairman and managing director A R Ansari.

For a long time, National Hydro Electric Power Corp has been the only central PSU in hydro power generation. NLC, one of the top profit making PSUs, also plans to establish a 50-mw wind project and expand it later to 100mw. Based on the success, the capacity will be ramped up to 200-250mw. The company plans to establish this project as a captive unit to support its upcoming thermal power project at Tuticorin. After serving its requirements, it may supply the surplus power to the grid.

“NLC, with its proven records in thermal power generation, could execute wind and hydro projects successfully as there are no major technology requirements. We will outsource some of the operations. While the maintenance of hydro project is less expensive than the thermal project, the only major area that requires expertise is construction,” said V Sethuraman, director – power, NLC.

Earlier, Ansari said the company’s net profit stood at Rs 821.09 crore for financial year 2008-09 compared with Rs 1,101.57 crore in the previous year. The fall in net profit was attributed to delay in land acquisitions and increased rainfall.

Sales turnover stood at Rs 3,554.91 crore compared with Rs 2,981.65 crore in the previous year.

The board has recommended a dividend of Rs 2.00 per share for the present financial year.

It is also forming a company called NLC Videsh for acquiring coal assets in countries such as South Africa and Indonesia to supply fuel to its power

stations.

While the board’s nod has been obtained, the center is yet to give its approval for the same.

Set to complete a slew of projects during this year and beginning of next year, the company is planning to increase its mining capacity from 24 million tonnes to 30.6 million tonnes and power generation capacity to 3,240 mw from 2,490mw. NLC aims to enhance its capacity to 10,000 mw by the end of the 12th plan. and is expected to invest Rs 40,000-42,000 crore by 2017 in various power projects across states.

Projects worth Rs 10,000 crore are already in the pipeline. The company’s plans to increase its borrowing level— which is Rs 13,000 crore at present— by achieving more profits in the coming years to fund its projects over the coming years.