Bses Project Stuck Over Coal Supply

The BSES-Damodar Valley Corporation promoted 1,000 mw Maithon Power project has hit a roadblock following a tiff between the promoters and Coal India over the coal supply agreement.

The project, located near Dhanbad, Jharkhand, is one of the largest power projects planned it in India and would require investments of Rs 4,000 crore to complete.

Senior executives close to the promoters said the disagreements with Coal India has delayed financial closure. The project has already been awarded a mega power project status by the Centre, which means Maithon Power would be able to sell power to multiple states.

Maithon Power has been incorporated as a joint venture between BSES and DVC in which both are to hold 45 per cent each, while the balance 10 per cent will be later picked up by the financial institutions.