Coal India, DVC form ₹21,000 cr JV for thermal power project in Jharkhand

Coal India and Damodar Valley Corporation have signed a joint venture to set up a Rs 21,000-crore, 1,600 MW thermal power plant at Chandrapura in Jharkhand, expected to start operations by FY32

Coal India Ltd (CIL) and Damodar Valley Corporation (DVC) have signed a joint venture agreement to set up a Rs 21,000-crore, 1,600 megawatt (MW) coal-fired power plant at DVC’s Chandrapura Thermal Power Station in Jharkhand, CIL said in a statement.

 

What does the new Coal India–DVC power project involve?

 

The project will add two ultra-supercritical units of 800 MW each. Coal will be supplied by CIL’s Jharkhand-based subsidiary, Central Coalfields Ltd. The companies will hold equal stakes in the venture.

 

The plant is expected to begin commercial operations by FY 2031-32. As a brownfield expansion, all infrastructure facilities, including land — often a major hurdle for new projects — are already in possession, the statement said.

 

 

Why is the project expected to have lower generation costs?

 

Located in a coalfield area, the project’s variable cost of power generation is expected to remain low due to proximity to coal sources.

 

The agreement was signed in the presence of CIL Chairman Sanoj Kumar Jha, DVC Chairman S Suresh Kumar, and senior officials from the Ministry of Coal.

 

When was the project first approved?

 

The venture follows a memorandum of understanding signed in April 2025, after the Power Ministry cleared the project proposal.