Indian steel giant Tata Steel (Tata) and its wholly owned subsidiary Rawmet Ferrous Industries Ltd have entered into a share subscription agreement and shareholders' agreement with Jasper Industries Pvt Ltd to form a joint venture coal-based power plant with a capacity of 2 x 67.5 megawatts in Orissa, India.
According to the agreement, Tata Steel and its subsidiary are to hold a 26 percent stake in the project, while Jasper Industries is to hold the remaining 74 percent.
The cost of the project and further details regarding the deal have not been disclosed.
About 60 percent of the power generated at the new plant will be used for Tata Steel's ferroalloy unit in Orissa, while the balance will be given to the state. According to the different estimates the power plant will consume around one million mt of coal annually.