NMDC puts Uttar Pradesh's Gonda power plant project on back burner.

NMDC has put its proposal to set up a Rs. 3,000 crore-power plant in Gonda of Uttar Pradesh on the back burner, as it feels it is not viable, according to a senior official of the state-owned miner.

'An internal committee felt that setting up power plant there would not be a better option now under the present circumstances. The whole plan may be taken up at a later stage. We can't even rule out dropping the whole idea,' the official told PTI.

In August last year, an MoU was signed between NMDC Power Ltd., a wholly owned subsidiary of Navratna Public Sector Undertaking, NMDC Limited and IEDCL, a subsidiary of IL&FS, for setting up a 2x250 MW thermal power plant under joint venture at Gonda, with the investment outlay of over Rs. 3,000 crore.

Gonda was the constituency of former Steel Minister Beni Prasad Varma and NMDC comes under that ministry. Varma lost in the recent general elections from Gonda.

ET