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New Delhi, Aug 21 (IANS) State-owned NMDC Power signed a memorandum of understanding Wednesday with IL&FS Energy Development Company (IEDCL) to set up a 500 MW coal-based power plant at Gonda, in Uttar Pradesh.
The project is estimated to be completed within three years at an approximate cost of around Rs.3,000 crore, a steel ministry statement here said.
NMDC Power is a subsidiary of iron ore miner NMDC, a unit under the steel ministry.
Power Minister Jyotiraditya Scindia present during the signing ceremony said the coming together of two giants like NMDC and IL&FS will contribute much to the nation's development. In Uttar Pradesh, there is 13.6 percent power deficit for which various steps like linking of various grids will be taken up soon, he added.
Steel Minister Beni Prasad Verma said: "Establishment of a power plant at Gonda will encourage potential agro-based industries and help in ensuring better living and industrial growth in the region."
NMDC Chairman C.S. Verma said that while NMDC Power would initially have a 48 percent stake, "subsequently, NMDC would dilute its stake in the venture to 26 percent while IEDCL would have the rest 74 percent stake".