Vikash Metal & Power Ltd, the Kolkata-based manufacturer and supplier of sponge iron, billets and ingots, has signed an MoU with the Bihar State Electricity Board for execution of a 2x250 mw thermal project in Begusarai. The project, estimated to cost Rs 2,500 crore, will be funded through a mix of debt and equity and is likely to be commissioned by 2011.
The company has approached the coal ministry for coal blocks. The state electricity board, with assistance of the state government, will help the company in coal block allotment. The proposal has been approved by the state investment promotion board. The approval of the state pollution control board is expected shortly. The Bihar Industrial Area Development Authority has allotted the company 300 acres of land at Begusarai.
Meanwhile, in future, the company plans to establish a 2,000-mw power plant in phases.