Raipur, Sep 27 (IANS) Maruti Clean Coal and Power Ltd, will invest Rs.10.70 billion ($233 million) to set up a 270 MW thermal power plant in the coal-abundant northeast region of Chhattisgarh, Industry Minister Rajesh Munat said here Wednesday.
'Maruti Clean Coal and Power signed a memorandum of understandings (MoU) with the Chhattisgarh government late Tuesday under which the private company will invest Rs.10.70 billion for a 270 MW thermal power plant to be set up in Korba district,' he said.
Under the MoU, the company will provide five percent of its total power generation to the state government on variable cost while the government will have a right to purchase power from the plant up to 30 percent of the total production.
'The company will soon table the feasibility report to the state government for a formal approval for the plant build-up process. It will also provide jobs to local people in the plant in accordance with our industrial policy,' the minister said.
Chhattisgarh's current power production capacity is 1,405 MW including 1,280 MW from thermal plants and 125 MW from hydel plants.
The state, having the country's 18 percent coal deposits mainly in its northeast regions, plans to become India's power hub by 2011 with an additional generation capacity of 12,000 MW as several public and private players have been lining up large-scale investments.