April 21 (Reuters) - Coal India (COAL.NS), the country's top coal producer, will build a 1,600 megawatt coal-powered plant through a joint venture in the eastern state of Jharkhand at an investment of 165 billion rupees ($1.94 billion) to meet increasing power demand.

The state-run company on Monday signed a non-binding memorandum of understanding with state-run power generator Damodar Valley Corporation for setting up the plant, which will have two 800 MW units and will be an expansion of an existing 500 MW plant.

The state-run company is also building two thermal power plants at its coal pit-heads in the central Indian state of Madhya Pradesh with 660 MW capacity, and a 1,600 MW plant in the eastern state of Odisha, both due for completion by 2030.

India aims to ramp up its thermal power capacity to meet growing domestic electricity demand even as it aims to increase non-fossil power capacity amid weak demand for tenders and project cancellations.

Private companies such as Tata Power (TTPW.NS), JSW Energy (JSWE.NS), and the Adani Group are also eyeing coal power capacity additions.

($1 = 85.1350 Indian rupees)