The Hindu Business Line : MSTC to invite auction bids for selling DVC units

MSTC has already completed its evaluation of the scrap at the two burnt down units and a tentative reserve price of about Rs 25 crore has been fixed.

Kolkata June 30

MSTC has been appointed to evaluate and invite auction bids for scrapping two units of the Damodar Valley Corporation (DVC).

Sources said that these two units, which were part of the Durgapur Thermal Power Station (DTPS), were ravaged by a fire in October 1985. The units, which were among the first units set up by the multi-utility corporation, had a capacity of 75 MW and 82.5 MW, respectively. The units, located at Waria 100 miles northeast of the city, have been decommissioned since then. Subsequently, in 1996, DVC had set up two new units on either side of the defunct units. These units have a total capacity of 350 MW.

MSTC has already completed its evaluation of the scrap at the two burnt down units and a tentative reserve price of about Rs 25 crore has been fixed. "Now MSTC will invite auctions for selling the plant as scrap," sources told Business Line.

The corporation has plans to build a new unit once the process of clearing the site was over. "This would be called DTPS Unit no 5 and is likely to be taken up in the Eleventh Plan Period,'' they said.

DVC has programmed a 2210-MW capacity addition programme for the current plan period, which involves the setting up of a greenfield project at Maithon and two brownfield expansion projects. It also plans to augment the capacity of its ageing units some of which are over 40 years old.

DVC, which was one of the first multipurpose integrated river valley projects of independent India, has in its fold thermal, hydel and gas-based units.

Sources said that it was one of the few power generating agencies in the country operating with such a mix of power plants with interconnected transmission network linked with the state and central sector agencies. Its total installed capacity is about 2700 MW with five thermal power plants and three hydel plants. Its activities also include water management and soil conservation.