CIL and DVC Form Joint Venture for 1,600 MW Power Project

12 Nov 2025 CW Team

Coal India Limited (CIL), the country’s largest coal producer, and Damodar Valley Corporation (DVC), a leading power generator in West Bengal and Jharkhand, have signed a Joint Venture Agreement (JVA) to develop a 1,600 MW brownfield thermal power project at DVC’s existing Chandrapura Thermal Power Station in Jharkhand. The agreement was finalised on 7 November 2025.

The project will comprise two ultra-supercritical units of 800 MW each, with coal sourced from CIL’s Jharkhand-based subsidiary, Central Coalfields Limited. The total estimated project cost is around Rs 210 billion, to be financed on a 50:50 equity basis between the two state-owned entities. The cost includes development, construction, and commissioning of both units, which are expected to begin commercial operations by FY 2031–32.

The JV also intends to explore future collaborations in other thermal and renewable energy ventures. Senior officials from both organisations stated that the project will leverage existing infrastructure at the Chandrapura site, ensuring efficient use of resources and faster execution.

Given its proximity to the coalfields, the project’s variable power cost is expected to remain competitive. As a brownfield expansion, major infrastructure, including land, is already available, expediting implementation.

The signing ceremony was attended by S. Suresh Kumar, Chairman, DVC; Sanoj Kumar Jha, Chairman, CIL; and senior officials from both organisations. The pact marks a significant step in enhancing national and regional power supply reliability and meeting India’s growing energy demand.

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