NMDC, the state-owned iron ore miner, announced its entry into thermal power generation by planning the establishment of a 500-MW power plant in UP's Gonda. It was reported that approximately Rs 30.16 billion would be invested in the project, with IL&FS Energy Development Company (IEDCL) being brought on board as a partner, securing a 74% stake, according to sources.

It was indicated that both companies were scheduled to sign a memorandum of understanding (MoU) for the project the following day. Gonda, being the Parliamentary constituency of Steel Minister Beni Prasad Verma, holds significance, as NMDC falls under his ministry.

As per reports, the power plant would comprise two units of 250 MW each. It was further mentioned that around 300-350 MW of electricity generated would be utilized at NMDC's forthcoming 3 million tonnes steel mill in Nagarnar, Chhattisgarh, which is situated more than 1,100 km away from Gonda, Uttar Pradesh.