Tata Power, Steel float 74:26 JV for power units

Tata Power Company has signed a joint venture (JV) agreement with Tata Steel to set up captive power plants in Chattisgarh, Orissa and Jharkhand.

According to releases issued by both companies to the BSE today, Tata Power will hold 74% equity in the joint venture and Tata Steel the remaining 26% stake.

"Tata Steel will consume power generated from the power plants meeting the requirements of captive plant norms stipulated by the government's captive power plant policy," the release added.

As part of the initiative, Tata Power has already announced the setting up of a 120 MW captive plant for Tata Steel in Jamshedpur based on blast furnace and coke oven gases. The gestation period is expected to be 26 months,  and the plant is due for commissioning by July 2008.