In what will be a booster for the power generation capacity of Neyveli Lignite Corporation, the ministry of coal allotted two coal blocks at Chhattisgarh and Jharkhand.
The Jigla-Barpalli block at Korba and Rajgarh districts of Chhatisgarh and Pachwara-South Block of Rajmahal Coal field in the Dumka District of Jharkhand have been allotted to cater to the company's upcoming plants in Tamil Nadu and Uttar Pradesh.
Also read: Sebi okays TN offer to buy NLC stake
The two projects will increase its power generation to a whopping 11,200 mega watt (MW) from 2,500 MW.
The company has been in the news for its proposed sale of five percent stake by the Central Government. Last month, Tamil Nadu chief minister J Jayalalithaa had expressed interest for purchasing the share in the company. Employee unions in the company have also gone on strike since July 3 to protest the stake sale.
Finance minister P Chidambaram had given a positive signal on the proposal. On Monday, market regulator Securities and Exchange Board of India (Sebi) gave its nod go ahead with the sale of stake from the company to the Government of Tamil Nadu.
The government last week allocated 14 coal blocks to state-run power companies including National Thermal Power Corporation (NTPC) and Neyveli Lignite Corporation (NLC). The blocks had geological reserves of 8,311 million tonnes which had a yielding capacity of 159 million tonnes, the coal ministry said.
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