Tata Power to set up captive power plants for Tata Steel in three states

Tata Steel Ltd and Tata Power have signed a joint venture agreement to set up captive power plants in Chattisgarh, Orissa and Jharkhand. This joint venture will help Tata Steel meet its power and steam requirements for its expansion plans in the three states.

Tata Steel will hold a minority 24-per cent stake with Tata Steel holding the remaining 76 per cent.

Tata Power will initially set up a 120 MW captive power plant for Tata Steel in Jamshedpur, utilising the steel maker''s blast furnace and coke oven waste gases from the steel making process for its captive consumption, as required by the government''s captive power plant policy. The project gestation period is expected to be 26 months and is due for commissioning by July 2008.

"We are delighted to support the aggressive expansion plans of Tata Steel in the states of Chattisgarh, Orissa and Jharkhand," said Prasad Menon, MD of Tata Power in a statement to the exchanges. "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," the statement added.