CIL, DVC sign joint venture pact to set up 1,600 MW coal-fired power project in Jharkhand

New Delhi: State-owned Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have signed a joint venture agreement (JVA) to undertake a brownfield expansion that will see the addition of 1,600 MW at DVC’s existing Chandrapura Thermal Power Station (TPS) in Jharkhand, CIL said in a statement on Friday.

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The agreement, signed on Friday, marks a strategic partnership between India’s largest coal producer and one of its leading power generators. The project will comprise two ultra-supercritical units of 800 MW each, with coal to be supplied by CIL’s Jharkhand-based subsidiary, Central Coalfields Limited (CCL).

Rs 21,000-cr investment; commercial operations by FY32

The project cost is estimated at about Rs 21,000 crore, to be shared equally between the two partners on a 50:50 equity basis. The investment includes development, construction, and commissioning of both units. The plants are targeted to commence commercial operations by FY 2031–32, aligning with India’s growing energy demand.

“The synergy between both the 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,” said a senior executive of CIL.

The official added that the project would significantly help meet both national and regional power demand.

Brownfield advantage, competitive costs

Being a brownfield expansion, the project benefits from existing land and infrastructure, which are already in possession. This is expected to enable faster implementation and lower project risks. Since the plant will be located in a coalfield area, the variable cost of power generation is expected to remain competitive, officials said.

JV to explore other projects in future

Beyond the Chandrapura expansion, the JV will also explore opportunities to jointly develop other thermal and renewable energy projects, marking a broader collaboration between CIL and DVC in India’s evolving power mix.

The JVA was signed in the presence of S Suresh Kumar (IAS), Chairman, DVC; Sanoj Kumar Jha (IAS), Chairman, CIL; Asheesh Kumar, Director (Business Development); and Swapnendu Kumar Panda, Member (Technical), DVC, along with senior officials from both the organisations.

Tushar Kumar (Renewables) signed the agreement on behalf of CIL, while Rajesh Kumar, Executive Director (Distribution & in-charge Business Development) represented DVC.

The signing follows a Memorandum of Understanding (MoU) inked between the two companies in April 2025, after the Power Ministry’s approval for forming the joint venture.

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