NMDC is planning to develop a coal-based power plant in Gonda district of Uttar Pradesh.

The company will set up a 500 MW power plant in two phases with an investment of Rs 3,016 crore. The project will come up over 600 acre at Turkadih in the Gonda district.

With this in mind, the company will form a JV with IL&FS Energy Development Company. Both the companies will soon sign an MoU for the project. IL&FS will have 74 per cent stake in the project while NMDC Power, a wholly-owned subsidiary of NMDC, will hold the remaining 26 per cent stake on behalf of the company.

The power plant will require either 1.988 million tpa at 85 per cent PLF (plant load factor) or 2.10 million tpa at 90 per cent PLF, depending on the efficiency of the plant.

For the project, NMDC is planning to source E/F grade coal from Northern Coalfields, a subsidiary of Coal India. It may also supply C grade coal which contains higher calorific value, from its Shahpur East and West coal blocks in Madhya Pradesh.

Of the total 500 MW power, the balance 200-150 MW power from the plant will be used for plugging the demand-supply gap of the state.

The 300-350 MW electricity will be used at NMDC's upcoming three million tonne steel mill at Nagarnar in Chhattisgarh. The steel mill project, estimated to cost Rs 15,525 crore, will require about 420 MW power to run its different units.

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