NMDC, NALCO to set up power plant in Madhya Pradesh: Tomar

The former plans to invest Rs 3,000 crore, while the latter will invest Rs 19,000 crore in the power plant

NMDC and NALCO will set up a thermal power plant in Madhya Pradesh at a cost of Rs 22,000 crore once the issues following the cancellation of coal mines by the Supreme Court are resolved, Steel and Mines Minister Narendra Singh Tomar said today.

"Following the Supreme Court order on coal blocks there is uncertainty regarding coal block of NMDC.... Power and Coal Minister Piyush Goyal (who was also present) is saying a way will be found... Then NMDC will invest Rs 3,000 crore and NALCO will invest Rs 19,000 crore in the power plant," he said at the Global Investors Summit here.

Besides, state-owned steel major SAIL is studying the prospect of iron ore availability in Chhatarpur district in the state, he said, adding that if 50 million tonne iron ore is available, the company will set up a pellet plant with an investment of Rs 1,500 crore.

"There is possibility of much more availability of minerals. Once the reserves reach 140 million tonnes, SAIL will invest Rs 12,000 crore to set up an integrated steel plant in Madhya Pradesh," Tomar added.

Other investments in the mineral sector in the state include a Rs 6,000 crore aluminium refinery by NALCO, Rs 2,200 crore for underground mining by Hindustan Copper Ltd and Rs 1,000 crore by MOIL.

NMDC will also invest Rs 1,000 crore in a diamond mining project in Tikamgarh.