DVC plans JV with West Bengal Power Corp

Kolkata: Damodar Valley Corporation (DVC) is weighing a joint venture proposal from West Bengal Power Development Corporation (WBPDCL) for acquisition of thermal coal assets abroad.

Addressing a programme to commemorate the 60th foundation day of DVC, the West Bengal Power Minister, Mr Mrinal Roy, proposed that considering concerns over quality as well as availability of domestic coal DVC should bid for acquiring coal assets abroad. “WBPDCL is ready to join any such initiative as a junior partner,” he added.

The proposal has attracted the attention of Union Power Minister, Mr Jairam Ramesh. “It is a very interesting proposal. DVC will definitely consider it,” Mr Ramesh said, adding that quality (high ash content and other impurities) and availability of Indian coal may prove two major challenges before coal-based thermal power generation in the days to come.

While WBPDCL is the state generation utility, DVC is promoted by the Centre and the state governments of West Bengal and Jharkhand.

The state agency, having an installed capacity of 2,820 MW, is currently consuming approximately 12-23 million tonnes of coal annually of which approximately five per cent is imported for blending with local coal.

Imports may go up further once WBPDCL installs the additional 1,270 MW capacity at its existing power stations during the next couple of months. While the generation capacity will move up to approximately 4,100 MW, the annual requirement of coal will increase to 17 million tonnes.

DVC, on the other hand, is so far dependent on domestic coal but is planning to start imports beginning this year. “We are currently consuming approximately 12 million tonnes of domestic coal. However, the availability of the same is a major concern and imports may start beginning this year,” a company source said adding that some of the DVC’s power stations are currently having a day’s stock of coal.

The corporation is currently implementing a number of projects to augment the total capacity from 2,200 MW to 9,000 MW by the end of this Plan period. All the projects are in different stages of implementation.

Earlier Mr Jairam Ramesh said that the power equipment maker BHEL has agreed to participate with DVC and IIT Kharagpur in creating a R&D facility. The Rs 120-crore project is primarily promoted by DVC in collaboration with IIT on a four acre of land at New Town in Kolkata. “Tata Power has also expressed interest in the initiative and may join the project,” the Union minister said.