NLC India (NSE: NLCI) said on Thursday it has signed an agreement with Odisha’s state investment agency to pursue a coal-fired power plant, a coal-gasification study tied to fertilizer production and a beach sand minerals project.
The planned thermal plant would involve an investment of 350 billion rupees ($3.69 billion) and have a capacity of 3,200 megawatt, the state-owned miner and power producer said.
The beach sand mineral processing facility would involve a tentative investment of 20 billion rupees.
While NLC did not disclose the investment for the coal-gasification proposal, it said it would explore the possibility of coal gasification and the production of synthesis gas for its use in the fertilizer sector.
Coal gasification converts coal into synthesis gas, mainly hydrogen and carbon monoxide, that is used to make chemicals and fertilizers, while beach sand minerals such as ilmenite, rutile and zircon are used in pigments, ceramics, aerospace and titanium-based products.
The move marks a significant commitment to coal-based infrastructure despite global pressure to shift toward cleaner energy, as electricity demand surges.
NLC estimates the power project could create about 4,000 jobs and the minerals facility about 500.
($1 = 94.8175 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Shilpi Majumdar)
