New Delhi, 21 August 
State-run NMDC today 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, a subsidiary of iron ore miner NMDC, would initially have a 48 per cent stake in the venture, while IEDCL, a subsidiary of IL&FS, would hold the remaining stake.
“Subsequently, however, NMDC would dilute its stake in the venture to 26 per cent while IEDCL would have the rest 74 per cent stake,” NMDC chairman CS Verma said at the MoU signing ceremony here.
Gonda is the parliamentary constituency of Union steel minister Beni Prasad Verma and NMDC is a unit under the steel ministry.
The project, which would mark NMDC’s foray into power, is estimated to be completed within three years from the date of financial closure at a cost of about Rs 3,000 crore.
“Establishment of power plant at Gonda will encourage potential agro-based industries and help in ensuring better living and industrial growth in the region,” steel minister Beni Prasad Verma said.
“The proposed partnership between NMDC Power and IL&FS would provide power to an area that has so far seen limited electrical connectivity,” said power minister Jyotiraditya Scindia, who was also present on the occasion.
The MoU was signed by Mr Hari Sankaran, vice-chairman and managing director of IL&FS Ltd, and Mr NK Nanda, chairman of NMDC Power Ltd.