NMDC has 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 Rs 3,000 crore. NMDC Power would initially have a 48 per cent stake in the venture, while IEDCL would hold the remainder. The project, which would mark NMDC's foray into power, is estimated to be completed within three years from the date of financial closure. NMDC has two captive coal fields Shahpur east and west in Shahdol district of Madhya Pradesh that are expected to start production by 2014-15. The company may use the coal to fuel the poer plant in Gonda, which is 500km away. The 600 acre required for the plant has been identified and not yet acquired.
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