Bengal's nod for RTPS critical to DVC's turnaround

West Bengal's no-objection for the joint venture in Raghunathpur Thermal Power Plant (RTPS) has become critical for Damodar Valley Corporation's (DVC) turnaround from deep losses.
"We are incurring an additional burden of about Rs 80 crore per month finance cost on account of Raghunathpur Thermal Power Plant. We are awaiting West Bengal's nod to complete the transaction for the proposed joint venture and hope to get it soon," DVC chairman Andrew W K Langstieh said at an interactive session with Merchants Chamber of Commerce and Industry here today.
West Bengal's permission is necessary as it is an equal stakeholder with the Centre and Jharkhand in DVC. DVC has already secured clearance from the Centre and Jharkhand government for the proposed JV with Neyvili Lignite Corporation (NLC).

In 2016-17 the loss will be around Rs 1,000 crore of which Rs 800 crore is on account of RTPS burden and Rs 200 crore for pay commission provison ... Without these two components, we could have made a breakeven," Langstieh said.
In 2014-15 DVC registered Rs 1100 crore and Rs 1300 crore loss in 2016-16 respectively.
"Last week I and NLC chairman had a chance to meet the West Bengal power minister Sobhandeb Chatterjee and he had given an assurance," he said.

As per the JV plan DVC wants to transfer 1200MW RTPS into a special purpose vehicle in which NLC will hold 74 per cent and DVC would retain 26 per cent.

Speaking about its Jharkhand government dues, Langstieh said there haS been fresh accumulation of Rs 1600 crore dues after Rs 4,770 crore legacy dues was settled under UDAY.
"There are indications that Jharkhand is planning to raise loans and it indicated to clear the dues in six instalments," he said.
DVC is developing its mine blocks that will deliver nine million tonne of coal annually over the next few years which will help in bringing down its power cost by 25-40 paisa per unit, the company's chairman said.