The government on Thursday approved the State-owned Neyveli Lignite Corporation’s (NLC) proposed joint venture to set up a Rs. 10,000 crore thermal power project in Uttar Pradesh.

The Cabinet has given its approval to NLC for the JV to set up a 1,980 MW coal-based thermal power project at Ghatmapur in Kanpur district of Uttar Pradesh, sources said.

The company has initiated the process for entering into an MoU with Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) for setting up the plant with 50:50 equity participation.

The Uttar Pradesh government has given in-principle approval to allocate 2,500 acres of land and 80 cusecs of water for the project.

NLC also has plans to set up a power plant with a capacity of 1,000 MW in Madhya Pradesh, as a joint venture with Northern Coal Fields Ltd, with 50:50 equity participation.

The company has evinced interest in participating in the bidding process of Ultra Mega Power Projects in Tamil Nadu, Orissa, Maharashtra, Karnataka and Chattisgarh.

Shares of the company were trading at Rs 91.80 a piece on the BSE, up 7.56 per cent.

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