New Delhi: Coal Indian subsidiary South Eastern Coalfields Limited (SECL) has signed an MoU with the Madhya Pradesh Power Generation Company Limited (MPPGCL) to develop a 660 MW thermal power unit at an investment of Rs 4,665 crore, the company said on Wednesday.

SECL said a joint venture company will be formed that will execute the 660MW supercritical thermal power plant in Amarkantak Thermal Power Station in Chachai.

The MoU was signed by the MPPGCL's Managing Director Bhanjit Singh and SECL's General Manager Arupdutt Chaudhary in presence of several senior officials.

A company official said SECL already supplies coal to an existing power plant at Amarkantak owned by MPPGCL and the new upcoming unit by the JV will also be fed by coal from its own mines.

The project, part of diversification by Coal India's largest subsidiary, will help the miner to improve its bottomline.

"The JV partnership holding pattern has been negotiated and not yet been finalized," the official said.

The plant will be built with modern supercritical state-of-the-art technology. The company said that air-cooled condenser technology will be used in the power unit, saving water for power generation.

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