State-run Neyveli Lignite Corporation (NLC) is planning to acquire Damodar Valley Corporation’s 1200 mw Raghunathpur Thermal Power Project (RTPP) through a joint venture company.
NLC has initiated actions to acquire power assets and in this regard one of the proposals under consideration is the acquisition of 1,200 mw Raghunathpur Thermal Power Project (RTPP) of Damodar Valley Corporation (DVC) through a joint venture company (JVC) proposed to be formed with the DVC with the equity shareholding of 74 : 26 by NLC and DVC,” the company said .
- DVC chairman Andrew WK Langstieh said the two units of 1200 MW Raghunathpur project have already started commercial operation on March 31 this year but the DVC has power purchase agreements of only 550 MW.
NLC, which is yet to set up a new thermal power unit, has PPAs of 650 MW in Karnataka. So both the corporations have decided to form a JV following clearances from the power and coal ministries.
- DVC is a three-way venture of the Union, Jharkhand and West Bengal governments. While DVC is a statutory body under the ministry of power.
- NLC is a company under the ministry of coal. Langsteih said the JV will also obtain a comfort or no objection letter from the Karnataka government to fulfill the PPA obligation of drawing power from the Raghunathpur unit.
