Tata Steel Ltd [Get Quote] said on Wednesday it has signed joint venture agreement with Tata Power [Get Quote] Co Ltd to set up captive power plants in Chhattisgarh, Orissa and Jharkhand.

In a communique to the Bombay Stock Exchange, Tata Steel said it will hold 26 per cent equity in the venture with Tata Power holding the majority stake of 74 per cent.

Under the agreement, Tata Steel would consume power generated from these plants to meet its requirements to support the expansion plans in Chhattisgarh, Orissa and Jharkhand.

As part of this initiative, Tata Power will initially set up a 120 MW captive power plant for Tata Steel in Jamshedpur, based on utilising waste gases from the steel making process, it added.

Tata Steel also said it would consume power only if the requirements of captive plant norms stipulated by the government's captive power plant policy are met.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group.