NLC India reports record-breaking growth in power generation, mining, and revenue in Q3 FY 2024-25

NLC India Limited (NLCIL), a key player in India’s energy sector, has achieved a significant milestone in expanding its power generation capacity during the third quarter of the 2024-25 financial year. The company successfully commenced commercial operations of NUPPL’s Ghatampur Thermal Power Project (GTPP) Unit #1, adding 660 megawatts (MW) to its total generation capacity. This expansion has increased the group’s overall installed power generation capacity from 6,071.06 MW to 6,731.06 MW, further solidifying its role in meeting India’s growing energy demands.

The commissioning of this unit marks a critical step in India’s push for enhanced electricity production, ensuring a stable and reliable power supply for industries and households. With a strategic focus on conventional and renewable energy, NLCIL is reinforcing its position as a leader in the energy transition, balancing sustainability with economic growth.

What Are NLC India’s Latest Coal and Lignite Mining Developments?

NLC India has intensified its coal mining efforts with the execution of a Coal Mine Development and Production Agreement (CMDPA) with the Ministry of Coal for the New Patrapara (South) coal mine project, which has an annual capacity of 12 million tonnes per annum (MTPA). This agreement is a crucial step in securing a steady supply of coal for the company’s thermal power plants, ensuring operational efficiency and reducing dependence on external coal sources.

The company has also achieved record-breaking lignite production growth, reporting 171.35 lakh tonnes (LT) for the nine months ending December 2024, marking a 5.23% increase from the 162.83 LT produced during the same period in the previous financial year. Additionally, coal production soared to an all-time high of 115.16 LT, reflecting a 40.11% year-on-year growth compared to 82.19 LT in the corresponding period of the last fiscal year.

By increasing domestic coal production, NLC India is playing a vital role in reducing India’s reliance on imported coal, thereby strengthening national energy security and supporting the country’s industrial expansion.

How Is NLC India Expanding Renewable Energy Investments?

As part of its commitment to sustainable energy development, NLC India has entered into multiple joint ventures to scale up its renewable energy footprint. The company signed an agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) to develop a (3×125) MW lignite-based thermal power station in Rajasthan, enhancing energy production for the region.

Furthering its renewable energy ambitions, NLCIL’s wholly owned subsidiary, NIRL, entered a partnership with RVUNL to develop a 2,000 MW renewable power project in Rajasthan. In addition, NIRL signed a joint venture agreement with Assam Power Distribution Company Limited (APDCL) to establish a 1,000 MW solar power project in Assam. These ventures align with India’s clean energy objectives and position NLCIL as a significant player in the country’s green energy revolution.

What Financial Milestones Has NLC India Achieved in Q3 FY 2024-25?

NLCIL has recorded its highest-ever revenue from operations, reaching ₹11,445 crore, a 21% increase compared to ₹9,458 crore in the previous year’s corresponding period. The company’s total income surged by 30%, climbing to ₹12,909 crore from ₹9,912 crore in the same timeframe last year.

Additionally, the company posted an all-time high profit after tax (PAT) of ₹2,245 crore, reflecting a 28% growth from ₹1,754 crore in the previous fiscal year. These financial gains highlight the company’s operational efficiency, increased power sales, and optimized mining production.

To reward shareholders, NLCIL’s board has approved an interim dividend of ₹1.50 per share for the 2024-25 financial year, demonstrating confidence in the company’s robust financial health and long-term profitability.

What Government Support Has NLC India Received?

In a move that enhances NLC India’s financial standing, the Ministry of Finance has granted a Capital Gains Tax exemption under the Income Tax Act for the transfer of renewable energy assets from NLCIL to its subsidiary, NIRL. This exemption will allow NLCIL to reinvest in clean energy projects, accelerating its renewable energy expansion while optimizing its financial structuring.

Additionally, the Ministry of Coal approved a revised cost estimate of ₹21,780.94 crore for the 3×600 MW Ghatampur Thermal Power Plant, reinforcing the project’s viability and long-term impact on India’s power sector.

Why Has NLC India Been Recognized for Industry Excellence?

NLC India’s commitment to operational excellence and sustainable mining practices has earned the company multiple accolades. It was recognized as one of the Best Performers under Special Campaign 4.0 in the New Initiative/Best Practice category, highlighting its efficiency in implementing government initiatives.

The company also received the Mining Innovation Award, reinforcing its dedication to best practices in coal and lignite mining. Further solidifying its industry leadership, NLCIL was honored with four Five-Star Rating Awards for its Mine-I, Mine-IA, BLMP, and Talabira II & III OCP operations. These achievements underscore the company’s commitment to environmental and safety standards in mining.

What Lies Ahead for NLC India?

With strong financial performance, an expanding power generation capacity, and increasing lignite production growth, NLC India is well-positioned for continued success. The company’s strategic focus on renewable energy investments, government-backed infrastructure projects, and operational efficiency will drive further growth in the coming years.

As India moves toward a more sustainable energy landscape, NLCIL’s record revenue from operations, significant mining developments, and commitment to clean energy transition ensure its role as a leading force in the country’s energy sector.