CIL (Coal India Ltd) plans to enter power generation business together with NLC (Neyveli Lignite Corporation). To start with, a thermal power plant of 2,000-megawatt capacity will be launched at pithead of any of the mines that are located in Mahanadi Coalfields Ltd's command area (in Orissa).
After massive supply of coal to public as well as private sectors to generate power, the union coal ministry has realized that its own resources need to be tapped so that countrywide thermal power plants can be set up. On October 31, 2006 in Nagpur, Shibu Soren - Union Coal Minister revealed that while the joint venture would open up new business line for CIL, in long run the company would be gaining if it associated itself as a promoter for this project.
The NLC-CIL merger also intends to launch two additional super thermal powerhouses in command areas of Northern Coalfields (Uttar Pradesh- Madhya Pradesh), and one more in Jharkhand.
As per a Research Analyst's view at RNCOS, who has recently researched a report on "Indian Coal Industry: Opportunities for Growth (2006)", "Entering of CIL into the business of power generation will generate huge revenue, resulting in massive yearly turnover for coal ministry."
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