NEW DELHI, Sept 30: State-owned iron ore miner NMDC has planned to set up a 250 MW coal-based power plant and is in talks with NTPC and SAIL for a joint venture.
“The capacity of the power plant may go up significantly as well though a final decision has not yet been taken. It will depend on talks with NTPC and SAIL but 250 MW is for sure,” a source in the know of the development said.
The power plant is proposed to feed the electricity requirements of NMDC’s upcoming 3 million tonnes steel plant at Chhattisgarh’s Nagarnar, which is being construction at a cost of Rs 15,525 crore.
The plant, slated for commissioning by 2015-end, will mark NMDC’s entry into the steel sector.
According to sources, PFC Consulting (a subsidiary of Power Finance Corporation) is helping NMDC in selecting the JV partner and other related issues in setting up the power plant.
Construction of the power plant, at 250 MW capacity, would need an investment of over Rs 1,200 crore, which will be decided as per the shareholding agreement with the JV partner, they said.
Besides, NMDC would be retaining a minimum of 26 per cent stake in the venture and will source a minimum 51 per cent power from the plant, they added.
The power plant is proposed to get coal from NMDC’s Shahpur (East) and Shahpur (West) blocks in Madhya Pradesh, which were awarded to it in 2007 under government dispensation route for commercial mining. The company is in the final stages of preparing the detailed project report (DPR).
According to them, the steel plant would require about 420 MW power to run its different units.
Of this, 70 MW would be generated in the steel plant itself, while rest would be sourced from the captive power plant and from the grid or from Chhattisgarh State Power Distribution Company Ltd.
Besides, the company is also looking to set up a 2 million tonnes per annum (MTPA) iron ore pellet plant at Nagarnar and a slurry pipeline from its Bacheli mines in Chhattisgarh to the steel plant site.
The pipeline would be used for sourcing iron ore for the steel plant, completing the integration of mining operations with steel making. (PTI)
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