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Jindal India, MP ink power deal

Shashikant Trivedi  |  New Delhi/ Bhopal 

Thermal Power Ltd, promoted by the BC Jindal group, and the Madhya Pradesh Trade and Facilitation Corporation Ltd (TRIFAC), a state government undertaking, signed a memorandum of understanding under which the former will set up a 1,000 Mw thermal project in stages in the Sidhi district. It will be a greenfield coal-based pithead plant.
"The first stage of the power plant is expected to be of a 250 Mw capacity while the second and third will be of 250 Mw and 500 Mw, respectively," said Raghav Chandra, managing director, TRIFAC. He signed the MoU with Umesh Chandra Jain, director, Jindal Power. The first phase of the project is likely to be completed by 2009.
Although the size of the project is yet to be known, "the project may be completed with an investment of Rs 4500 crore approximately," said a senior official in the state government.
The coal field for the project is to be supplied by Singlrauli coalfields under Northern Coalfields Limited, while water supply will be ensured from Rihand reservoir.
The feasibility report of the project is under final stage while the firm has sent a request for coal linkage and water supply.
"The firm needs 7,000 million cubic feet per hour, TRIFAC will extend promotional support in obtaining various clearance, approvals and permissions from Government of Madhya Pradesh and its agencies on request of Jindal.
TRIFAC will also assist Jindal in providing necessary assistance to JITPL to put up the rain line connecting the allocated mine to the project.
Power is the key agenda for development in the state. After failures of the previous government to attract private in power sector, the state government is making efforts afresh in the sector.
In its budget 2006-07 the government has proposed allocation of Rs 503 crore for improving the state's power generating capacity. An amount of Rs 117.78 crore has been earmarked for Narmada Valley Development projects and Rs 385.22 crore for Madhya Pradesh Power Generation Company projects.
A thermal project of 500-MW is under construction at Birsinghpur, near Shahdol district. Similarly 210-MW Amarkantak Thermal Power Station unit is likely to start production by February 2007.

First Published: Wed, March 15 2006. 00:00 IST