The project is estimated to be completed in 40 months once all the regulatory and statutory approvals are received.
"I am happy to announce that with the several projects coming on stream soon, we will double our power generation and there will be no shortage of power from next year," Chief Minister Raman Singh said after signing the MoU.
The Chhattisgarh government assured Balco that it will help the company secure coal linkage/coal mines from within the coal-rich state.
South Eastern Coalfields Ltd in Bilaspur is doubling its production from 35 mt per annum to 70 mt per annum.
The government will also assist Balco in securing single window clearances for the project. According to the MoU, the Chhattisgarh State Electricity Board will purchase a portion of the power generated to cater to the state's requirements. Five per cent of CSEB's total purchase will be at variable cost (7.5 per cent in case of generation using coal from captive coal block).
The plant will also supply surplus power to other state distribution entities. Balco, a part of the Vedanta Resources Plc, recently completed an expansion programme at an investment outlay of Rs 4,500 crore (Rs 45 billion) including a new 2,50,000 tonne aluminium smelter with associated 540 MW captive power plant at a coal pithead in a region.
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