To set up a 500-mw thermal power plant in Uttar Pradesh with an estimated investment of Rs 2,000 crore, the Union governmebt-owned iron ore miner NMDC has decided to rope in IL&FS Energy Development Company as joint venture partner, an official of the company said. IL&FS will have 74 per cent stake in the venture and NMDC will have the remaining, the official added. NMDC in January invited expressions of interest (EoIs) from interested parties to be part of the power project, which would mark its foray into the power sector.

Three companies, including IL&FS Energy and Jindal Power, had evinced interest to be a JV partner of NMDC for the power plant. After initial screening, Jindal Power and IL&FS Energy were found to be eligible on technical and financial criteria, a source said. The power to be generated from the plant would be used for plugging the demand-supply gap of the state.

The balance would be transmitted to meet the need of NMDC's upcoming three million tonnes per annum (mtpa) steel plant at Nagarnar in Chhattisgarh.NMDC may also make coal available for the plant from the Shahpur East and Shahpur West blocks in Madhya Pradesh at the prevailing price.