Steel Authority of India (SAIL) and engineering & construction firm Larsen & Toubro (L&T) have signed a memorandum of under standing (MoU) for setting up a joint venture (JV) company to develop, manage and own captive and independent power plants, to meet the future power requirements of SAIL.

The JV company will develop a 1,600 mw (2 X 800 mw) greenfield coal- based power plant using super critical technology. In addition, the companies will keep the option to further expand capacity by 800 MW/1600 MW at the same or some other location.

Further, the scope of agreement also includes exploration of opportunities to own captive thermal coal blocks to cater to the power plant requirements.

The MoU is a precursor to Joint Venture Agreement between SAIL and L&T for the purpose of incorporation of Joint Venture company.

Both the parties plan to enter into a JV agreement within three months from the date of signing of MoU.