Madhya Pradesh in joint venture pact with Jaiprakash AssociatesDecember 24th, 2008 - 9:33 pm ICT by IANS
Bhopal, Dec 24 (IANS) The Madhya Pradesh government Wednesday signed a memorandum of understanding (MoU) with Jaiprakash Associates Ltd for setting up a 660-MW thermal power plant at Nigori village in Singrauli district of the state.As per the agreement, the diversified industrial giant would form a joint venture with the state government for producing coal and then set up the thermal power plant.
The deal was signed by State Mineral Corp (SMC) managing director S.K. Mishra and Jaiprakash Associates managing director Sunny Gaur, said a company official.
The company will have 51 percent equity in the new entity and power generation is expected to start in six years.
The entire project will require investments worth Rs.30 billion (Rs.3,000 crore).
SMC is expected to earn Rs.750 million per annum through facilitation fees after the project and the power plant starts functioning.