NLC receives 3 bids for its Rs 4,400-cr Lignite-to-Methanol project: Sources PSU Watch
News Updates

NLC receives 3 bids for its Rs 4,400-cr Lignite-to-Methanol project: Sources

NLC India Ltd has received three bids in response to the tender floated for a 0.40 MMTPA Lignite-to-Methanol project last year, two sources told PSU Watch

Shalini Sharma

New Delhi: State-run Neyveli Lignite Corporation of India Limited (NLCIL) has received three bids in response to the tender floated for a 0.40 MMTPA Lignite-to-Methanol project last year, two sources aware of the matter told PSU Watch. According to sources, the three bids for the lignite gasification project came from L&T, Megha Engineering and Infrastructures Ltd (MEIL) and UK-based Petrofac. The project is expected to be a shot in the arm for India’s efforts towards coal gasification, especially high ash coal, which is found in abundance in India. Lignite, referred to as brown coal, is actually a kind of coal but with a high carbon content of around 25–35 percent. It is considered the lowest rank of coal due to its relatively low heat content.

While several technologies are available for gasification of low-ash coal across the globe, technologies for gasification of high-ash coal are limited.

NLC Lignite-to-Methanol project timeline

In October 2022, NLC had floated a global tender for awarding the project through project management consultancy (PMC) Engineers India Limited (EIL) for gasification block (LEPC-1) of its Lignite-to-Methanol project at Neyveli. The project is part of NLC’s diversification plan. The PSU is setting up a Lignite-to-Methanol capacity of 1,200 TPD (tonne per day) (0.40 MTPA) at a capital cost of about Rs 4,400 crore. The project is expected to be commissioned in 2027.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

Kolkata Metro to increase Purple Line services, operating from 6.40 am to 9.26 pm

Bank unions pitch for regular jobs rather than contractual ones

UP Govt to provide 40,521 subsidised solar pumps to farmers in FY26

FinMin, RBI working on portal to help citizens claim unclaimed assets: DFS Secy

SC to consider plea for listing petitions of states in minerals royalty case