1. IMPLEMENTATION:

1.1 THERMAL POWER STATION- ll EXPANSION

The TPS-ll Expansion of capacity 500 MW comprises of 2 units of 250 MW each. The Lignite for this plant will be supplied from Mine-II Expansion. The technology used in this upcoming plant is based on Fluidized bed combustion, which is a more environmental friendly technology facilitating low emission levels of toxic air pollutants apart from improved process efficiency. Unit-l of this project is expected to commissioned in December 2010 and Unit-II in June 2011.

1.2 COAL BASED THERMAL PLANT AT TUTICORIN (2 X 500 MW)

The Joint Venture Project between NLC and the Tamil Nadu Electricity Board (TNEB) viz., coal based thermal power plant of 2 x 500 MW capacity at Tuticorin in Tamil Nadu, at an estimated cost of Rs. 4,909.54 crores, was formally inaugurated on 28th February 2009 by Shri Pranab Mukherjee, the then Hon’ble Union Minister for External Affairs and Finance. The project is being implemented by NLC and TNEB with the equity participation in the ration of 89:11 and NLC’s share of equity contribution of around Rs. 1311 crores will be met through internal accruals, over a period of time. NLC Tamilnadu Power Limited, the JV Company has tied up with M/s. Rural Electrification Corporation Limited, for its entire debt requirement of Rs. 3437 crores and the same is being drawn by the JV Company depending upon the project requirements. Unit-I of the project is scheduled to be commissioned by March 2012 and Unit-II by August 2012. The power from Tuticorin is to be supplied to the states of Karnataka, Kerala, Tamilnadu and Union Territory of Puducherry.

1.3 WIND POWER PROJECT IN TAMILNADU

As part of the diversification programme to sustain and improve the growth rate, NLC is in the process of setting up a 50MW capacity wind based power project in Tirunelveli District of Tamilnadu. The Project estimated to cost Rs.312.50 crores is expected to be commissioned in a period of 14 months from the Zero date. Tendering and evaluation of bids is in process for this green power project.

2. STATUS OF ADVANCE ACTION PROPOSALS (AAP):

2.1. THERMAL POWER PROJECT ( 2 X 5OO MW ) IN NEYVELI :

As the power generation from TP S-I at Neyveli is proposed to be tapered down between the year 2009 and 2014, due to ageing of the plant, it has been proposed to set up a power plant at Neyveli with a capacity of 2 x 500 MW, for which MOC has accorded sanction for the advance action proposals including for carrying out certain studies in respect of augmentation of existing mines. Preliminary activities such as preparation of Feasibility Report, Environmental studies, Contour Survey and Soil investigation study are in progress. Our company has initiated action for obtaining Mega Power Project status for this project so as to avail certain concessional duties. The estimated cost of the power project is Rs. 5000 crores.

2.2 BITHNOK THERMAL POWER PROJECT (250 MW) LINKED WITH MINE (2.25 MTPA)

A Thermal Power Plant of 250 MW capacity with linked mine of 2.25 MTPA is proposed to be set up at Bithnok in Bikaner District, Rajasthan. The estimated cost of the project is Rs. 1700 crore. Ministry of Coal (MOC) has approved the AAP for carrying out certain pre-project sanction activities for Mine and Power Projects. Finalisation of FeasibiIity Report (FR) for Thermal Project is in progress. Draft FR for mine project has been received and cost-updation is in progress. Preparation of Environment Impact Assessment / Environment Management Plan (EIA / EMP) reports for the projects is under finalization. Notification has been issued by Government of Rajasthan (GoR) for acquisition of private land for the project. Obtaining mining lease from FoR is in Q process. Clearance has been received from GoR for use of water for this project from the Indira Gandhi Nagar Pariyojana (IGNP) canal. Contour Survey and Geological exploration work have been completed. Hydro-Geological Studies and Geo-Technical investigation studies are in progress.

2.3. BARSINGSAR EXTENSION POWER PROJECT (250 MW) AND HADLA & PALANA LIGNITE MINE (2.5 MTPA)

The mine of 2.5MTPA of lignite capacity linking both HadIa & Palana Lingite blocks with the 250MV Power plant in Bikaner District of Rajasthan as an extension of the on-going Barsingsar Power Project. MOC has approved the AAP for carrying out certain pre-project sanction activities. Application has been submitted to GOR for acquisition of required land for the project and also for grant of Mining lease. Botanical Survey of India (BSI) and Zoological Survey of India (ZSI) have been engaged for carrying out the Flora and Fauna Study in the Hadla Mine area as required by the Ministry of Environment and Forest. Preparation of Feasibility Report (FR) and EIA/EMP report is under progress.

2.4. JAYAMKONDANI LIGNITE BASED MINE•CUM-THERMAL POWER PROJECT

(13.5 MTPA Lignite Mine and 2 x 800 MW Thermal Power Station) The Ministry of Coal has accorded sanction for the Advance Action Proposal (AAP) for taking up certain preliminary works relating to the proposed project to set up a 2 x 800 MW power plant with linked lignite mine of 13.5 MTPA at Jayamkondam in the State of Tamil Nadu. The estimated cost of the above mine project is Rs. 8750 crores and that of the power project is Rs. 9000 crores. Administrative sanction of the state Government for acquisition of the required extent of land has been sought for the mining lease for the project and also for allocation of water from Kollidam river. Preparation of a composite environmental report covering mine and power projects and the draft report is under finalization. Geological exploration, hydro- geological studies, Soil investigation, Contour Survey and Pump test have been completed. Action has been taken to appoint a consultant for carrying out Socio impact Assessment study as per the requirement of National Rehabilitation and Resettlement Plan 2007.

2.5 GUJARAT POWER PROJECT (1000 MW) WITH LINKED LIGNITE MINE (8.0 MTPA)

As a joint venture project with Gujarat Power Corporation Limited, a Mine-cum-Power project in the state of Gujarat, at an estimated cost of Rs. 6400 crores has been proposed. The Ministry of Coal has sanctioned Advance Action Proposal for taking up certain preliminary activities. Government of Gujarat (GoG) has been addressed for water allocation, mining lease etc. Feasibility Report and Environmental Report for Mine and Power Projects are under preparation. Detailed Geological Exploration is nearing completion. GoG has requested for allocation of atleast 90% of the power from this JV project. Since power allocation rests with the Ministry of Power, the request of GOG has been referred to MOP. In the meantime, GoG has evinced interest to develop the lignite block on its own to generate power for the state and the issue was referred to Ministry of Coal and MOC has deliberated the issues with GoG and the decision of GoG is awaited.

2.6 COAL BASED THERMAL POWER PLANT IN ORISSA (4 X 500 MW)

(a) A Mega Coal Based Thermal Power Plant of capacity 2000MW at an estimated cost of Rs. 10,000 crores has been proposed. In principle approval of the Government of Orissa for allocation of land in Rengali Taluk of Sambalpur district in Orissa is awaited.

(b) A Joint Venture Company between Mahanadi Coal Fields Limited, Hindalco and NLC for mining coal from Talabira block is established. The 1000MW Coal Based Power plant in Joint Venture with Mahanadi Coal Fields adjacent to lb Valley with Coal linkage from Talabira Mine is also planned.

2.7 MINE-III (8.0 MTPA) AND THERMAL POWER STATION-III (2X500 MW) IN NEYVELI:

Our company is presently examining the report submitted by M/s. Norwest Corporation, UTAH, USA suggesting alternative mining technologies in respect of Min-III of 8.0 MTPA capacity. The final draft feasibility report of TPS-lll would be prepared and finalized only after the feasibility report for mine is firmed up.

3.1 POWER PROJECT IN UTTAR PRADESH

As a strategy for achieving continuous growth, our company has plans to enter into power projects using fuel other than lignite at different states of the country. Towards this, our company has proposed to enter into a joint venture agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for setting up a coal based power plant with a capacity of 2000 MW at an estimated cost of Rs. 10,000 crores, in the State of Uttar Pradesh, with 50:50 equity participation. Action has been initiated to sign a MoU with UPRVUNL and to prepare FR & EIA/EAP reports. MOC has been requested to accord approval for the Advance Action Proposal for the proposed project so as to take up certain pre-project related activities. A suitable site is being identified for the proposed power plant. Government of UP has given in-principle approval for allotment of 2500 acres of land and also 80 cusecs of water for the project. Necessary application has been made to Ministry of Coal for getting long term coal linkage for this project.

3.2 POWER PROJECT IN MADHYA PRADESH

Our company has also plans to set up a power plant with a capacity of 1000 MW in the State of Madhya Pradesh, as a joint venture with Northern Coal Fields Limited, with 50:50 equity participation. Our Board of Directors has approved the MoU between the two companies and the same will be executed shortly.

3.3 ULTRA MEGA POWER PROJECT:

Considering the acute power shortage prevailing in almost all the states in the country, the GOI felt the need for developing large size power projects called Ultra Mega Power Projects (UMPP). Accordingly the Ministry of Power has launched an initiative for development of UMPP each with a capacity of 4000 MW and as on date nine UMPPs have been proposed to be set-up in various states. Out of the nine UMPPs identified, four projects have already been awarded. The notification is yet to be issued by GOI in respect of remaining 5 UMPPs proposed in the States of Tamil Nadu, Orissa, Maharashtra, Karnataka and Chattisgarh. Our company intends to participate in the bidding process of UMPPs as and when notified by the Government.

3.4 DEVELOPMENT OF COAL BLOCKS

Recently, Government of India has taken a decision to allot coal blocks to the State Governments, Central Power Utilities and Private Parties for captive use for Power Generation, so as to meet the huge demand for coal expected as a result of massive capacity addition programme proposed in the XI and XII Five Year Plans. This provides an opportunity for your company to utilize the rich expertise it possesses in mining and also in power generation. Our company intends to take up development of Coal Blocks allotted to State Govemment(s) and / or Private companies either individually or jointly with State Governments and or Private companies as a Public / Private Partnership Project and utilizes the coal for its captive use for power generation. Ministry of Coal has been addressed for granting 'in-principle’ approval in this regard.