CIL partners with DVC to expand thermal power project at Rs 21,000 cr

New Delhi, Nov 7 (PTI) State-owned CIL on Friday said it has entered into a partnership with Damodar Valley Corporation (DVC) to expand a thermal power project in Jharkhand at an estimated cost of Rs 21,000 crore.

Under the joint venture agreement, the two companies will also explore possibilities of jointly undertaking other thermal power and renewable energy projects.

The upcoming coal-fired project at the existing site of DVC's Chandrapura TPS (thermal power station), Jharkhand, "will comprise two ultra supercritical units of 800 MW each aggregating to a total installed capacity of 1,600 MW," Coal India Ltd (CIL) said in a statement.

Coal for these plants would be sourced from CIL's Jharkhand-based subsidiary, Central Coalfields Ltd.

The estimated project cost is pegged at nearly Rs 21,000 crore and would be on a 50:50 equity sharing basis.

The project cost includes the development, construction, and commissioning of both units. The plants are targeted to commence commercial operations by 2031-32, aligning with India's expanding energy demand.

"The synergy between both organisations is to strengthen the country's baseload generation capacity, leveraging existing infrastructure at the Chandrapura site to ensure efficient resource utilisation and faster implementation," a senior executive of CIL said.

This project will meet national and regional power demand significantly.

Since the project will be coming up in the coalfield area, the variable cost of the power is expected to be competitive. The brownfield expansion project includes all infrastructure facilities that are under possession, the statement said.

CIL accounts for over 80 per cent of domestic coal production. PTI SID SHW