NLC's JV For Rs 10k Crore UP Power Project Likely To Be Approved

NEW DELHI: The government is likely to approve state-run Neyveli Lignite Corporation’s proposed joint venture to set up a Rs 10,000 crore thermal power project in Uttar Pradesh.
The Cabinet may consider granting approval to Neyveli Lignite Corporation for formation of a joint venture to set up a 1980 MW coal-based thermal power project at Ghatmapur in Kanpur district of Uttar Pradesh, sources said.
The company has initiated the process for entering into an MoU with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for setting up the plant with 50:50 equity participation.
The UP government has given its in-principle approval to allocate 2,500 acres of land and also 80 cusecs of water.
NLC also has plans to set up a power plant with a capacity of 1000 MW in Madhya Pradesh, as a joint venture with Northern Coal Fields Limited, with 50:50 equity participation.
The company has evinced interest to participate in the bidding process of Ultra Mega Power Projects in Tamil Nadu, Orissa,Maharashtra, Karnataka and Chattisgarh.
Shares of the company closed at Rs 85.35 a piece on the BSE, down 0.87 per cent from the previous close.