Steel Authority of India (SAIL) and engineering & construction firm Larsen & Toubro (L&T) have signed a memorandum of understanding (MoU) for setting up a joint venture (JV) company to develop, manage and own captive and independent power plants.
The JV Company will develop a 1,600 mw (2 X 800 mw) greenfield coal- based power plant using super critical technology. The agreement also includes exploration of thermal coal blocks to cater to the power plant requirements.
SAIL’s power requirement is likely to increase from the present level of 950 mw to about 1,826 mw by 2010 and 4,066 mw by 2020. The agreement will help SAIL meet future power requirements. Currently, the power requirement for the SAIL plants is being met primarily through in-house/captive power plants, including those with JV companies. The balance requirement is met through distribution companies of the respective grids