Tata Power Keen On Venture With Damodar Valley

Tata Power Company Ltd (TPCL) has shown interest in setting up a power plant as a joint venture with the state owned power generation major, Damodar Valley Corporation (DVC).

Officials from DVC met Tata Power executives a couple of weeks back and invited the company to participate a joint venture for setting up one of the power plants proposed by DVC in the 10th Plan Period. DVC officials approached Tata Power to participate in the JV on same line as its role in Maithon Power Ltd (MPL), a joint venture company between DVC and BSES. Both the promoters hold 45 per cent each in MPL while the rest is held by FIs and the general public.

The project however, is yet to be identified. Detailed project reports will be ready in a few weeks time following which Tata Power will decide on the project. DVC wants TPCL for forming a JV for any of its five proposed projects slated to be commissioned in the 10th Plan period. Projects planned for the period include 500 mw power plants each at Bokaro Steel Plant and Durgapur Steel Plant, 2x500 mw power station each at Ramgarh and Koderma, and a Rs 1,600 crore transmission system expansion. Although project costs were yet to be finalised, initial estimate show that the plants in Bokaro and Durgapur will cost around Rs 2,000 crore each, while cost for the Koderma and Ramgarh units would cost Rs 4,000 crore each.

Tata Power sources said discussions were at an initial stage and it would take some time before TPCL decides on it. This was because DVC has provided TPCL with only two detailed project reports - one for the transmission line and one for a power station. They would discuss the matter with DVC once TCPL received all reports and decided on one project.

Following this DVC will also try to scout for partners for rest of its expansion projects. DVC