Rashtriya Ispat Nigam (RINL) is planning to form a joint venture with state-run power producer NTPC to construct a greenfield coal-fired power plant at its site in Ukkunagaram, Visakhapatnam in the state of Andhra Pradesh.

Planned to be developed on around 400 acres, the power plant will feature supercritical technology and is expected to serve RINL’s future power requirements. It will be designed to generate less than 1,000MW.

RINL chairman and managing director Madhusudan was quoted by The Hindu as saying: "The discussions are in progress.

"We are yet to work out nitty-gritty of our understanding though both the companies are in agreement that it is mutually beneficial."

RINL operates three turbo generators, each with a capacity of 60MW, and two 67.5MW turbo generators.

The company expects the expansion and upgrades of the units to increase its captive power generation capacity to 523MW from the current 354MW.

Last week, RINL has synchronized its 120 MW gas-based captive power plant with the state grid.

NTPC is currently constructing a 4,000MW power plant at Pudimadaka in Visakhapatnam with an investment of Rs240bn ($3.7bn).

The power producer is looking for suitable land to expand the capacity of its 2,000MW Simhadri super thermal project at Parawada.