Madhucon Projects has signed a memorandum of understanding with the state government of Jharkhand to construct a 1,320MW thermal power plant in Ranchi, India.

The INR60bn ($1.35bn) project will be delivered in two phases of 660MW each and will receive coal linkage from the state government.

The company will need to raise about INR48bn ($1.07bn) for the planned construction of the plant, scheduled to begin next year.

The plant is expected to commence operations by 2015, reports the Economic Times.