Under this MoU, Tata Power and Tata Steel will set up a joint venture company to build, own and operate the power plant. This power plant will use most of the excess production gases produced in the steel mills and will convert the same into steam and power for the use of the steel plant.

This power plant will enable Corus' IJrnuiden works to secure its own long-term steam and power supply to ensure efficient operation of its production facility. The Corus' IJmuiden plant is also a green power project and adds to the growing sustainable energy portfolio for Tata Steel and Tata Power in reducing its carbon footprint significantly. As the power plant will be based on production gases, it will be a low carbon emitting plant. The new power plant will be ready in 2013 and will partly replace the existing power supply arrangement with another utility.

The company made this announcement after the trading hours on 25 June 2009.