Coal India signs pact with DVC for Rs 16,500 crore power project in J'khand

State-owned Coal India on Monday said it has entered into a pact with with Damodar Valley Corporation (DVC) for setting up a ultra supercritical power plant in Jharkhand with a total investment of Rs 16,500 crore.

Ultra-supercritical power plants operate at higher steam temperatures and pressures than supercritical plants, leading to improved efficiency and reduced emissions.

"Widening further its business diversification portfolio into thermal power generation, Coal India Ltd (CIL)...formally joined hands with Damodar Valley Corporation (DVC) to set up a coal fired 2 x 800 MW ultra supercritical power plant in Jharkhand," the PSU said in a statement.

The brownfield project will be an expansion of existing Chandrapura Thermal Power Station which at present operates with the capacity of 2x250 mw. 

The total investment would be to the tune of Rs 16,500 crore. The joint venture company would be on 50 per cent equity sharing basis. Coal for the proposed power plants would be sourced from coalfields in the proximity from CIL's subsidiary companies Bharat Coking Coal Ltd and Central Coalfields Ltd.

A non-binding pact was signed between the two government owned energy entities on Monday in Kolkata.

The MoU also includes provisions to explore various opportunities for jointly developing thermal power projects and green energy projects, with or without storage, to meet the growing power demand in the DVC valley region.

In the presence of CIL Chairman P M Prasad, and DVC Chairman S Suresh Kumar, the pact was inked by Debasish Nanda, Director (Business Development) CIL and Swapnendu Kumar Panda, Member (Technical) DVC on behalf of the respective companies.

Coal India accounts for over 80 per cent of domestic coal output. The company is aiming to produce 875 million tonne of coal by 2025-26, with an offtake target of 900 million tonne.