The Hindu Business Line : DVC plans new projects to generate 4,500 MW

Damodar Valley Corporation (DVC) intends to reposition itself in the same business. It has finalised a Rs 18,000-crore investment plan for setting up three new extension units adjacent to the existing thermal power plants and six greenfield thermal projects. The new projects together will create an additional total capacity of 4,500 MW.

Three extension units, each with 500 MW capacity, are to be set up at Bokaro-A and Mejia-B, which will be completed in 3-4 years.

Six greenfield power projects with capacity of 500 MW each will be set up at Kodarma in Jharkhand (two), and Durgapur and Raghunathpur in West Bengal (two each). These projects will be ready within 2011-12.

Besides, DVC's ongoing capacity addition programme at Mejia and Chandrapura, totalling about 1,000 MW, will be ready within a year. About 30 per cent cost of the new projects will come from internal sources and the rest through borrowings.

Announcing the financial results for 2005-06, the Chairman, Mr Ashim Kumar Barman, told newspersons that the corporation also has plans to set up two joint venture thermal power projects, teaming up with the Tatas and SAIL.

The Tata-DVC combine would set up a 1,000 MW thermal power station at Maithon, while the DVC- SAIL combine will set up a 500 MW capacity thermal station at Bokaro. Both ventures would be ready for commercial generation within the 11th Plan (2011-12) period.

Mr Barman also said that the corporation sold about 11,720 million units (MU) of power during the year under review, compared 10,376 MU last year.

Direct earning from sale of power increased to Rs 3,522 crore (Rs 2,912 crore).

Total earnings (inclusive of other income and income from interest-free bonds) and profit after tax touched Rs 4,676 crore (Rs 3,179 crore) and Rs 1,066 crore (Rs 632 crore) respectively.

Other income was placed at Rs 348 crore, and income from the 8.5 per cent bonds at Rs 806 crore. The bonds were issued by the Jharkhand Government in favour of DVC.

Mr Barman also said that DVC was operating thermal and hydel stations with a combined capacity of 2,950 MW. Of this, hydel projects contribute only 145 MW.

Therefore, the corporation plans to raise hydel power generation capacity by undertaking a new 120 MW capacity project.