A company release said the upcoming project would be set up in two phases of 1,320 mw each. The Jharkhand government would assist the company in land acquisition, permit drawal of required quantity of water and would also provide other infrastructure facilities.
According to the MoU, the Jharkhand government will have the first right of purchase - up to 25% of the power generated from the proposed project. The remaining power can be sold to any other state through competitive bidding.
Lanco has selected Jharkhand as the state has about 30% of the coal reserves available in the country and the coal has good clorific value and considerably less ash content.
With the upcoming project, the total power generation capacity of Lanco will increase to 12,000 mw. The company is currently operating a 368 mw multi-fuel combined cycle project in Vijaywada, Andhra Pradesh, 119.8 mw gas-based project in Thanjavur, Tamil Nadu. The company is in the midst of setting up a 1,200 mw coal-based project in Korba, Chhatisgarh and it is in the process of establishing hydro-power capacities, totaling 800 mw, in HP, Uttaranchal and Sikkim.