CIL, DVC sign JVA for a 1600 MW coal fired plant

The state owned entities Coal India Limited (CIL), the country's major coal producer and Damodar Valley Corporation (DVC) the power generator that operates in West Bengal and Jharkhand, on 7th November, signed a strategic joint venture agreement (JVA) to undertake Brownfield Expansion of 1600 MW capacity Thermal Power Project at the existing site of DVC's Chandrapura TPS, Jharkhand. The JV also explores possibilities of jointly undertaking other thermal power and renewable energy projects.

The upcoming coal fired project will comprise two ultra supercritical units of 800 MW each aggregating to a total installed capacity of 1,600 MW. Coal for these plants would be sourced from CIL's Jharkhand based subsidiary, Central Coalfields Limited.

The estimated project cost is pegged at nearly Rs, 21,000 crore and would be on a 50:50 equity sharing. Project cost includes development, construction, and commissioning of both units. The plants are targeted to commence commercial operations by FY 2031-32 aligning with India's expanding energy demand.

"The synergy between both the organizations is to strengthen the country's baseload generation capacity, leveraging existing infrastructure at the Chandrapura site to ensure efficient resource utilization and faster implementation" said a senior executive of CIL. This project will meet national and regional power demand significantly.

Since the project will be coming up in the coalfield area the variable cost of the power is expected to be competitive. The project being a brownfield expansion all the infrastructure facilities including land, the major hurdle for any new project, are under possession.

The JV agreement was signed in the presence of Mr. S. Suresh Kumar (IAS), Chairman, DVC; Mr. Sanoj Kumar Jha (IAS), Chairman, CIL; Mr. Asheesh Kumar, Director (Business Development), Mr. Swapnendu Kumar Panda, Member (Technical), DVC and other senior officials of CIL and DVC.

Mr. Tushar Kumar, (Renewables) inked the pact on behalf of CIL while Mr. Rajesh Kumar, Executive Director, (Distribution & in-charge Business Development) was the signatory on behalf of DVC.

Earlier, a MoU was signed between both the companies in April 2025 after the country's Power Ministry gave the nod, which paved the way for the proposed formation of the Joint Venture.

Shares of Coal India Limited was last trading in BSE at Rs. 376.15 as compared to the previous close of Rs. 373.10. The total number of shares traded during the day was 133090 in over 2786 trades.

The stock hit an intraday high of Rs. 376.55 and intraday low of 371.40. The net turnover during the day was Rs. 49851965.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 DamodarValleyCorporation JVAgreement