Tata Steel signs JV Agreement with Tata Power to set up captive power plants

Tata Steel Ltd has announced that on November 22, 2006 the Company has signed the Joint Venture (JV) Agreement with Tata Power Co Ltd to set up captive power plants in Chattisgarh, Orissa and Jharkhand. This joint venture aims to meet the power and steam requirements to support the expansion plans of the Company in the above states.

The Company will hold 26% equity in the venture with Tata Power holding 74% equity. Under this agreement, the Company will consume power generated from these power plants meeting the requirements of captive plant norms stipulated by the Government of India’s Captive Power Plant Policy.

As part of this initiative, Tata Power will initially set up a 120 MW captive power plant for the Company in Jamshedpur, based on utilizing the waste gases from the steel making process.

Source : Equity Bulls

Keywords