New Delhi: State-owned Coal India Limited (CIL) and Damodar Valley Corporation (DVC) on Friday signed a joint venture agreement (JVA) to undertake a brownfield expansion at DVC’s existing Chandrapura Thermal Power Station (TPS) in Jharkhand. The project will add 1,600 MW of ultra-supercritical capacity, comprising two units of 800 MW each, with coal supplied by CIL’s Jharkhand-based subsidiary, Central Coalfields Limited (CCL).
Rs 21,000-Crore Investment with Targeted FY32 Operations
The project cost is estimated at around Rs 21,000 crore, to be shared equally on a 50:50 equity basis between the two partners. The investment covers development, construction, and commissioning of the new units. The plants are expected to commence commercial operations by the financial year 2031–32, aligning with India’s rising 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 project is expected to meet both national and regional power needs.
Brownfield Advantage and Competitive Costs
As a brownfield expansion, the project benefits from existing land and infrastructure, reducing implementation time and project risks. Located in a coalfield area, the variable cost of power generation is expected to remain competitive, officials added.
Plans for Future Collaboration
The newly formed JV between CIL and DVC will also explore opportunities to jointly develop additional thermal and renewable energy projects, signaling a broader partnership to contribute to India’s evolving energy mix.
The JVA signing ceremony was attended by senior officials, including S Suresh Kumar (IAS), Chairman, DVC; Sanoj Kumar Jha (IAS), Chairman, CIL; Asheesh Kumar, Director (Business Development), and Swapnendu Kumar Panda, Member (Technical), DVC. Tushar Kumar (Renewables) signed on behalf of CIL, while Rajesh Kumar, Executive Director (Distribution & in-charge Business Development) represented DVC. The agreement follows a Memorandum of Understanding (MoU) signed in April 2025 after the Power Ministry’s approval for forming the JV.
About Coal India Limited (CIL)
Coal India Limited is India’s largest coal producer and a state-owned enterprise under the Ministry of Coal. It operates multiple subsidiaries across the country and supplies coal for thermal power generation, steel production, and other industrial uses. CIL plays a critical role in ensuring energy security for India’s growing economy.
About Damodar Valley Corporation (DVC)
Damodar Valley Corporation is a central PSU under the Ministry of Power, responsible for power generation, transmission, and distribution primarily in the states of Jharkhand and West Bengal. DVC operates several thermal and hydroelectric power plants and focuses on supporting regional development and energy reliability.
