Millennium Post
Business

NMDC, IL&FS Energy in pact to set up 500-MW power plant in UP

State-run NMDC on Wednesday signed an initial pact with IL&FS Energy Development Company (IEDCL) to set up a 500 MW coal-based thermal power plant at Gonda in Uttar Pradesh with an investment of Rs 3,000 crore.
NMDC Power, a subsidiary of iron ore miner NMDC, would initially have a 48 per cent stake in the venture while IEDCL, a subsidiary of IL&FS, would hold the remainder.

'Subsequently, however, NMDC would dilute its stake in the venture to 26 per cent while IEDCL would have the rest 74 per cent stake,' NMDC chairman C S Verma said at the MoU signing ceremony here.
Gonda is the parliamentary constituency of steel minister Beni Prasad Verma. NMDC is a unit under the steel ministry. The project, which would mark NMDC's foray into power, is estimated to be completed within three years from the date of financial closure at a cost of about Rs 3,000 crore.

'Establishment of power plant at Gonda will encourage potential agro-based industries and help in ensuring better living and industrial growth in the region,' Steel Minister Verma said.

'The proposed partnership between NMDC Power and IL&FS would provide power to an area that has so far seen limited electrical connectivity,' said power minister Jyotiraditya Scindia, who was also present on the occasion.
Next Story
Share it