Indiabulls Power Services (IPSL), a subsidiary of Indiabulls Real Estate, has entered into a memorandum of understanding (MoU) with the Jharkhand government for setting up of 1,320 mega watt (MW) power project, a statement sent to the Bombay Stock Exchange said.

In terms of the MoU, government of Jharkhand shall facilitate and extend all assistance to IPSL with regards to allotment of captive coal block, acquiring land and allotting water for the project, the statement further read.

The state government shall purchase upto 25 % of power delivered from the proposed project under the Power Purchase Agreement at a tariff to be determined by appropriate regulatory commission while IPSL will have the right to sell the balance power outside the state or to bulk consumer within the state.

At the time to filing this report, the stock of Indiabulls Real Estate was trading 4.87 % down at Rs 379 per share as against its 9th june closer of Rs 398.40 per share.