NewsCorporate ActionsCoal India and Damodar Valley Corporation Forge Strategic Partnership for 1,600 MW Thermal Power ProjectCoal India and Damodar Valley Corporation Forge Strategic Partnership for 1,600 MW Thermal Power Project
Coal India Limited (CIL) and Damodar Valley Corporation (DVC) signed a Joint Venture Agreement on November 7, 2025, for a 1,600 MW brownfield thermal power project expansion at DVC's Chandrapura Thermal Power Station in Jharkhand. The project, estimated to cost Rs. 21,000 crore, will consist of two 800 MW ultra-supercritical units with a 50:50 equity sharing between CIL and DVC. Coal will be sourced from Central Coalfields Limited, and the project aims to commence commercial operations in FY 2031-32. The joint venture will be incorporated as a private limited company with an initial paid-up share capital of Rs. 10 lakh and an authorized share capital of Rs. 10 crore.
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Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have taken a significant step towards enhancing India's power generation capacity. The two state-owned entities signed a Joint Venture Agreement (JVA) on November 7, 2025, to undertake a brownfield expansion of a 1,600 MW thermal power project at DVC's existing Chandrapura Thermal Power Station (TPS) in Jharkhand.
Key Details of the Joint Venture
| Aspect | Details |
|---|---|
| Project Capacity | 2 x 800 MW ultra-supercritical units |
| Total Installed Capacity | 1,600 MW |
| Estimated Project Cost | Approximately Rs. 21,000.00 crore |
| Equity Sharing | 50:50 between CIL and DVC |
| Coal Source | Central Coalfields Limited (CIL's Jharkhand-based subsidiary) |
| Target Commercial Operations | FY 2031-32 |
Strategic Implications
This partnership represents a significant move in India's energy sector, aimed at strengthening the country's baseload generation capacity. The project leverages existing infrastructure at the Chandrapura site, which is expected to ensure efficient resource utilization and faster implementation.
Project Benefits
- Competitive Power Generation: Being located in the coalfield area, the variable cost of power is expected to be competitive.
- Infrastructure Advantage: As a brownfield expansion, the project benefits from existing infrastructure, including land availability.
- Meeting Growing Demand: The project aligns with India's expanding energy needs, targeting to meet national and regional power demands significantly.
Corporate Governance and Structure
The Joint Venture Company will be incorporated as a private limited company with the following details:
| Aspect | Details |
|---|---|
| Initial Paid-up Share Capital | Rs. 10.00 lakh |
| Authorized Share Capital | Rs. 10.00 crore (1,00,00,000 Equity Shares at Rs. 10 each) |
| Registered Office | To be situated in West Bengal, India |
| Board Representation | Each party (CIL and DVC) will nominate three executives as Directors |
Future Prospects
Beyond this specific project, the joint venture agreement opens avenues for Coal India and DVC to explore other thermal power and renewable energy projects jointly. This collaboration could play a crucial role in India's energy security and future power generation strategies.
The signing of this agreement marks a significant development in India's power sector, showcasing the government's commitment to enhancing the country's energy infrastructure through strategic partnerships between state-owned entities.
Historical Stock Returns for Coal India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.76% | -3.25% | -2.26% | -1.90% | -13.63% | +208.83% |
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