DVC fails to clear strategic investor plan for Purulia project

The Damodar Valley Corporation board has failed to invite Expression of Interest for a strategic investor in the proposed 2,500-MW Raghunathpur power plant at Purulia.
"The board could not clear the agenda to invite EoI after West Bengal power secretary Gopal Krishna objected to it and left the meeting," sources privy to the development told PTI.
West Bengal is a shareholder in the power-cum-irrigation utility along with Jharkhand and the Centre.
Facing acute funds crunch, the DVC was planning to bring in equity partners for the 2X600 mw phase-I and 2X660 MW Phase-II (Raghunathpur Thermal Power Project).
According to sources, the agenda in the board meeting included inviting EoI including from PSUs and private, state government to allow carrying out of due-diligence by new prospective bidders.

A DVC spokesperson declined to comment on the board meeting.

Sources said that today's board meting was held with about two dozen CISF commandos guarding the venue.
Officials indicated that the DVC's funds crunch was the result of outstanding dues of Rs 11,122 crore from different consumers including the Jharkhand State Electricity Board which alone owes the the public undertaking Rs 8,511 crore.
The DVC also failed to get the Centre's nod for a capital infusion of Rs 3,900 crore to come out of the dire financial mess.
The total debt burden of the DVC stands at Rs 30,000 crore.