NLC India Ltd., (NLCIL), a Navaratna Public Sector Undertaking (PSU) under the Ministry of Coal has planned to set up a methanol project using lignite with an investment of Rs. 44 billion in Neyveli. The project, said to be the first of its kind in the State, will have a capacity of 1,200 tonnes per day (0.40 million tonnes per annum) and is expected to be commissioned in 2027.
According to a press release, NLCIL has requested the Union Ministry of Coal to include the project in the Centre’s proposed production-linked incentive scheme, under which a financial incentive would be provided for every unit of production sold.
The PSU has appointed Engineers India Limited (EIL), a Navaratna PSU functioning under the Ministry of Petroleum and Natural Gas, as the project management consultant.
EIL’s vast experience in the hydrocarbon sector, coupled with NLCIL’s strong project implementation team and experience, would turn the project into a reality within the timeline, it said.
NITI Aayog would be monitoring the implementation of the project.