Tata Power Signs JV Agreement with Tata Steel for setting up Captive Power Plants in Chattisgarh, Orissa & Jharkhand

Tata Power Company Ltd on November 22, 2006 has announced the signing of the Joint Venture (JV) Agreement with Tata Steel 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 Tata Steel in the above mentioned States.

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

As a part of this initiative, the Company has already announced setting up a 120 MW captive plant for Tata Steel in Jamshedpur, based on blast furnace and coke oven gases which are waste gases from the steel making process. The project gestation period is expected to be 26 months and is due for commissioning by July 2008.

Mr Prasad Menon, MD of the Company said "We are delighted to support the aggressive expansion plans of Tata Steel in the States of Chattisgarh, Orissa and Jharkhand. Our long standing partnership in Jojobera, Jamshedpur has set various industry benchmarks in project execution and implementation. This Joint initiative will help accelerate Tata Power’s growth plans and strengthen its national footprint".

Source : Equity Bulls

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