"The MoU marks a benchmark agreement between the government and Tata Power towards bridging the gap in power requirements of the state and country," A J Engineer, director of Tata Power, said.
A final agreement would be signed after the company completes a feasibility study in three months.
Chief minister Arjun Munda and B Muthuraman, managing director of Tata Steel, were also present during the signing of agreement.
Tata Power would explore the feasibility of setting up power projects at Ramgarh, Koderma, Latehar, Chandil and Maithon or any other alternate site in the state.
The state government and Tata Power would also formulate a viable mode for taking over distribution circles in Jharkhand, and jointly examine the viability of setting up a suitable company for handling the transmission function.
