SAIL (Steel Authority of India) and L&T (Larsen and Toubro) have signed a MoU (Memorandum of Understanding) for Joint Venture to develop, manage and own captive and independent power plants. The JV firm will develop a 1,600 mw (2 X 800 mw) Greenfield coal- based power plant. There would be use of super critical technology in the power plant.

 

SK Roongta, chairman of SAIL said that this initiative would be a trend-setter for developing large thermal power plants through public-private partnership, and according to him the companies will keep the option to further expand capacity at the same or some other location. The new deal will help SAIL meet future power requirements for its different production outlets.

 

SAIL wants a regular and uninterrupted power supply and for that matter its power requirement is met primarily through in-house/captive power plants or with JVs which it has developed over the period. However, the power requirement of SAIL will increase from the present level of 950 mw to about 1,826 mw by 2010 and 4,066 mw by 2020; the new project seems to aim for the same.