PACT INKED FOR SETTING UP POWER PLANT IN GONDA

NEW DELHI: The state- run National Mineral Development Corporation ( NDMC) on Wednesday 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 R 3000 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 CS Verma said at the MoU signing ceremony here.

Gonda is the parliamentary constituency of steel minister Beni Prasad Verma. The NMDC is a unit under the steel ministry.

The project, which would mark the NMDC’s foray into power, is estimated to be completed within three years from the date of financial closure at a cost of about R 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,” the steel minister 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 IL&FS Ltd, and N K Nanda, Chairman of NMDC Power Ltd.

The project, which would mark the NMDC’s foray into power, is estimated to be completed within three years from the date of financial closure at a cost of about R3,000 crore. Gonda is the parliamentary constituency of steel minister Beni Prasad Verma.