Boiler problem spikes Neyveli Lignite's hopes of 500 MW addition

By Indo Asian News Service | Monday, December 10, 2012 | 10:40:04 PM IST (+05:30 GMT) Comment 0 Comment

Chennai, Dec 10 (IANS) Integrated lignite mining-cum-power generator Neyveli Lignite Corporation Ltd's (NLC) hopes of adding 500 MW generation by this year end got dashed with technical problem continuing to dog its two boilers, said a top company official.

Chennai, Dec 10 (IANS) Integrated lignite mining-cum-power generator Neyveli Lignite Corporation Ltd's (NLC) hopes of adding 500 MW generation by this year end got dashed with technical problem continuing to dog its two boilers, said a top company official.

"The CFBC (circulating fluidised bed combustion) boiler was lit last month and it stopped functioning latter due to equipment failure. There is no hope of commissioning the unit in three months time," NLC CMD B.Surender Mohan told IANS.

He said the heat exchanger in the boiler supplied by Bharat Heavy Electricals Ltd (BHEL) was not able to tolerate the high temperature and failed.

"The boiler is not able to go above 50 percent of its rated capacity (250 MW)," Mohan said.

According to Mohan, NLC is deducting 7.5 percent of the order value towards liquidated damages for the inordinate delay in commissioning the plant.

In May this year, the NLC said it would add 1,000 MW this fiscal to its existing 2,740 MW capacity.

The company hoped to add 500 MW at Neyveli from its two 250 MW CFBC units and 500 MW at Tuticorin unit being built in joint venture with Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO).

According to TANGEDCO, the two 500 MW units at Tuticorin is expected to go on stream only in December 2013.

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