Rourkela: The Rourkela Steel Plant of the Steel Authority of India (SAIL) and the Green Energy Development Corporation of Odisha have signed an agreement to set up a hydro electric power project at the Mandira dam.

The joint venture company will be known as Mandira Power Corporation Limited.

The company will install the hydro power unit with a tentative installed capacity of 10MW (3 units of 3.33MW each). The power plant will generate electricity by harnessing the energy potential of water released from the dam for the Rourkela Steel Plant (RSP) to use it in the downstream. The dam is a captive reservoir of the RSP and provides water to the steel plant. During emergency, it also supplies water to the captive township as was witnessed during the 2016 summer.

The estimated cost of the project is Rs 78.80 crore. This will be completed shortly as well. As water being released for the plant shall be gainfully utilised, there will be no impact on the availability of water for the steel plant.

The RSP will consume the power generated at the proposed project. However, it can be used in any other unit of SAIL through open-access mechanism. Apart from providing cheap access to power, the project will ensure that the power so generated will be treated as renewable electricity and help the RSP to fulfil its renewable power obligation.

SAIL and the corporation shall have equity partnership of 26 and 74 per cent, respectively. The company's board will have six directors - four from the corporation and two from the RSP.

RSP CEO Ashwini Kumar said: "The RSP has always been committed to protect and preserve the environment. We are regularly adopting, adapting and innovating new ways towards this cause." He termed the initiative as yet another significant step by the RSP to nurture nature.

The dam is situated nearly 50km away from here and a frequently visited place of picnickers for its picturesque environment. Besides, its water reservoir is the happy nesting ground of many migrating birds during winter.