The availability of coal in abundance makes Jharkhand an ideal state for setting up thermal power plants. The Government of Jharkhand has taken several initiatives for the development of this industry. It has signed Memorandum of Understanding with the Government of India as a token of its commitment to the reforms in the power sector. Rural electrification has been accorded top priority. The work on renovation and modernization of existing power generating stations has already commenced. The State is attracting private investment in the industry for its further growth.