NMDC, IEDCL sign MoU to set up 500MW power plant in UP

NMDC, IEDCL sign MoU to set up 500MW power plant in UPNMDC Power Ltd (NPL) has penned down an agreement with IL&FS Energy Development Co Ltd (IEDCL) to set up a 500MW thermal power plant in the northern state of Uttar Pradesh (UP).

NPL is a subsidiary of government-run iron ore miner National Mineral Development Corp (NMDC), while IEDCL is an auxiliary unit of IL&FS Ltd.

According to the terms of the signed memorandum of understanding (MoU), the thermal power plant would be set up at Gonda in UP, at an estimated cost of nearly Rs 3,000 crore.

Union steel minister Beni Prasad said that the project would lead to better living standard and industrial growth in the region.

Speaking about the project, Mr. Prasad said, "The establishment of the power plant at Gonda will encourage potential agro-based industries and help in ensuring better living and industrial growth in the region."

He added that the project would open new avenues of employment for Gonda's people.

The power plant project is expected to become operational in within three years after start of the construction. The state of UP is currently facing a power deficit of 13.6 per cent.