State-run NMDC today said it is looking for a partner to set up a 400 Mw power plant in Chhattisgarh to meet the requirements of its upcoming three million tonne steel plant in the state.
The company today held discussions with more than 25 interested bidders in Hyderabad, a company statement said, without giving any names.
"We want to set up a 400 Mw power plant in Chhattisgarh, of which about 200 Mw will used for our steel plant in the state. For that, we are looking for a joint venture partner," a senior company official told PTI.
The official added that NMDC will have a minority stake of about 26% in the proposed plant, while rest of the equity would be held by the joint venture partner.
Besides this, the joint venture partner will have the freedom to sell rest of the power in open market or within Chhattisgarh, the official said.
"We aim to commission the plant by the end of 2013, so that it meets our requirements when our steel plant gets operational," the official said, adding that fuel linkage -- either coal or gas -- is yet to be decided.
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The official also declined to comment on proposed investment as the negotiations are at early stages.
In industry parlance, it is said that about Rs 5 crore is required to produce one megawatt power, which means that about Rs 2,000 crore will be the required investment for the proposed plant.
The official added that construction of the 3 million tonne steel plant in the mineral rich state is on full swing and would be commissioned on schedule (by the end of 2014-15).
The Navratna company is making an investment of about Rs 15,000 crore for setting up the integrated steel making facility at Nagarnar in Chhattisgarh and had completed the land acquisition in last August.
It has also secured all regulatory clearances like environment, forest and water among others and has awarded two packages for the construction of the steel plant.
This includes an order of Rs 760 crore turnkey execution of a sinter plant complex there to a consortium of Siemens VAI, SVAI India and NCC.
Sinter is a clinker like aggregate normally produced from relatively coarser fine iron ore. This is a highly preferred input in blast furnaces. It improves the operation of blast furnace operation, productivity and reduces coke consumption.
At present, more than 70% of hot metal in the world and 50% in India are produced through sinter.
Apart from Chhattisgarh, NMDC also has a joint venture with Russia's Severstal plans to set up a 2 million tonne per annum steel plant in Karnataka. Work on the project is likely to start next year.