NMDC, known primarily for its iron ore mining operations, is embarking on a new venture in the realm of thermal power generation with the establishment of a 500-MW power plant in Gonda, Uttar Pradesh. This strategic diversification into power generation is a significant step for NMDC, representing its commitment to expanding its presence beyond mining and contributing to India’s energy sector.
The project, estimated to require an investment of approximately Rs 30.16 billion, is being undertaken in partnership with IL&FS Energy Development Company (IEDCL), which will hold a substantial 74% stake in the venture. This partnership brings together NMDC’s expertise in mining and IEDCL’s experience in energy infrastructure, ensuring the successful execution and operation of the power plant.
The choice of Gonda as the location for the power plant holds political significance, being the Parliamentary constituency of Steel Minister Beni Prasad Verma, under whose ministry NMDC operates. This decision not only underscores the strategic planning behind the project but also highlights the potential for synergies between the steel and power sectors.
The power plant will consist of two units, each with a capacity of 250 MW, equipped with advanced technologies to ensure efficient and sustainable power generation. A significant portion of the electricity generated is earmarked for NMDC’s upcoming 3 million-tonne steel mill in Nagarnar, Chhattisgarh. This highlights NMDC’s forward-looking approach, aiming to meet its energy needs through self-sufficiency and contributing to the development of the steel industry in the region.
The signing of the memorandum of understanding (MoU) between NMDC and IEDCL is a crucial milestone in the project’s timeline, setting the stage for the commencement of detailed planning and execution. This partnership is not only expected to boost energy infrastructure in Uttar Pradesh but also create employment opportunities and stimulate economic growth in the region.
