Tatas form power JV for steel plants

MUMBAI: Tata Power Company (TPC) and Tata Steel have decided to form a 74:26 joint venture for captive power plants at the latter’s proposed steel plants in Chattisgarh, Orissa and Jharkhand. The JV will set up plants with a cumulative capacity of 5,900 mw, at Rs 23,000 crore.

The JV aims to meet power requirements of Tata Steel at its upcoming plants. Tata Steel is setting up three greenfield projects in addition to the 5 mtpa expansion plan in Jamshedpur.

TPC will initially set up a 120 mw captive power plant in Jamshedpur, utilising waste gases from the steel making process. The project is expected to be commissioned by July ’08.

According to Prasad Menon, managing director, TPC, the joint initiative would accelerate TPC’s growth plans and strengthen its national footprint. “The long standing partnership in Jojobera, Jamshedpur, has set various industry benchmarks in project execution and implementation,” he said.

According to the memorandum of understanding (MoU) with Jharkhand government, a 12 mtpa greenfield integrated steel plant will be set up in two phases and will include captive power plant of 1,000mw.

The first phase of 6 mtpa is likely to be set up in 36 months to 54 months from the date of obtaining all statutory clearances. The plant is expected to be spread over 5,000 acres and the total cost of the green field expansion is estimated at Rs. 40,000 crore.