NMDC, state-owned iron ore miner, has decided to set up a 250 MW coal-based power plant. The company is planning to form a joint venture with NTPC and SAIL for the power plant and it is in talks with them. Through this plant, the company aims to feed the electricity requirements of NMDC's upcoming 3 million tonne steel plant at Chhattisgarh's Nagarnar.
The company needs an investment of over Rs 1,200 crore for the power plant, at 250 MW capacity, which will be decided as per the shareholding agreement with the JV partner. It will be retaining a minimum of 26% stake in the venture and will source a minimum 51% power from the plant.
The entity will source the coal from NMDC's Shahpur (East) and Shahpur (West) blocks in Madhya Pradesh, for the power plant. The company is in the final stages of preparing the detailed project report (DPR).