DVC is corporatized, divided into 3 entities with ownership remaining intact
The Damodar Valley Corporation (DVC), independent India’s first multi-purpose river valley project, will be corporatised and split into at least three entities for transmission, generation and distribution to achieve greater efficiency, an official said on Wednesday.
Energy Minister Manohar Lal praised the company and asked it to expedite the demerger during a review meeting at the DVC headquarters.
He also suggested that the board explore the IPO route to raise funds for the expansion plans.
DVC falls under the Centre’s Ministry of Energy.
The DVC was formed in 1948 and is an integrated force with a command area of 24,235 km2 in West Bengal and Jharkhand.
“The plan for corporatisation was on the agenda, but the minister wanted to expedite the process. The existing shareholding between the governments of Centre, West Bengal and Jharkhand will remain intact,” DVC chairman S Suresh Kumar told PTI after the review meeting.
According to a source, the interests of the Centre and the two states are almost identical.
DVC plans to install an additional capacity of nearly 10,000 MW of thermal and green energy, taking the total capacity to approximately 16,700 MW.
This would include 3,720 MW of thermal energy, 4,000 MW of solar energy and 2,500 MW from a pumped-storage hydroelectricity.
The total capex is estimated at Rs 50,000-60,000 crore.
The current installed capacity of DVC is nearly 6700 MW, of which 6540 MW is thermal.
During the meeting, the Minister emphasized the need to increase the share of renewable energy in DVC’s total energy portfolio.
Currently, DVC has a meagre green energy portfolio and is in the process of implementing a 310 MW solar power plant with NTPC.
According to sources present at the meeting with the minister, DVC raised issues of lagging coal deliveries by Coal India subsidiaries, which is affecting generation costs and electricity tariffs.
“We have also updated certain aspects of the Fuel Supply Agreement of coal to keep pace with the demand. We have also sought the ministry’s assistance in signing Power Purchase Agreements for the future capacities and recovering old dues,” said a source, declining to be quoted.
DVC has about Rs 300-400 crore in legacy contributions out of the Rs 1,000 crore with the Jharkhand state government.
DVC officials said the minister was very cooperative and assured the corporation that the operational and financial problems it was facing would be resolved at both the departmental and government levels so that the corporation could function smoothly and effectively.
The Minister also offered DVC full support for its expansion plans and overall growth so that the corporation can make a significant contribution to the sustainable development of the country.
Of the total nine thermal and hydroelectric power stations of the DVC, five are located in Jharkhand, the rest in neighbouring West Bengal.
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First print: Jul 18, 2024 | 01:01 AM IST