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State-run NMDC today 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% 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% while IEDCL would have the rest 74% 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.
The MoU was signed by Hari Sankaran, Vice Chairman and Managing Director of IEDCL, and N K Nanda, Chairman of NMDC Power Ltd.
