Published On:September 29 2008
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DVC to form JV with Tata Power
Kolkata: Damodar Valley Corporation (DVC) may entrust the responsibilities of operation and maintenance (O&M) of its upcoming super critical thermal power stations to a joint venture with Tata Power.
DVC is currently setting up a series of super critical projects in Bengal and Jharkhand to enhance its generation capacity from close to 3,000 MW to 9,510 MW in 2011. Tata Power is setting up a 4,000 MW ultra mega project, with five super critical boilers of 800 MW each.
Both the companies have also agreed to carry out a detailed feasibility study for enhancing the capacity of the upcoming 1,050 MW thermal power station of Maithon Power Ltd to 2,850 MW or 3,150 MW.
Maithon Power is a 74:26 joint venture between Tata Power and DVC and is setting up two units of 525 MW each at Maithon in Jharkhand.
Both the companies are also exploring joint venture opportunity to develop captive coal mines for DVC projects as well as Maithon Power.
In a ceremony attended by the Union Minister of State for Power, Mr Jairam Ramesh, the Tata Power Managing Director, Mr Prasad R. Menon, and the DVC Chairman, Mr Asim Barman, the companies entered into an MoU underlining a series of future areas of collaboration between the two.
“DVC is setting up a number of super critical thermal power plants, which will require better coal handling practices. By joining hands with Tata Power in operation and maintenance areas we can introduce the best coal handling practices in the industry,” Mr Burman told newspersons.
According to Mr Prasad, apart from taking care of DVC assets, the O&M joint venture may explore the possibility to offering its services to other power producers in the country.
According to the Minister, DVC is making steady progress to implement its plan to tap the capital market through either an SPV or a wholly-owned subsidiary. The SPV is expected to manage the new super critical projects undertaken by the corporation.
DVC has received board approval in this regard. The SPV is slated to be created within this fiscal. However, asset transfer may take some more time.
Interestingly, neither Mr Burman nor Mr Prasad rules out the possibility of Tata Power’s participation in the SPV, which will practically manage all the new capacities of DVC.