The Hindu Business Line : Damodar Valley Corp, SAIL in talks for second jt venture

HAVING formed a joint venture, Bokaro Power Supply Company Ltd, Damodar Valley Corporation and Steel Authority of India Ltd are now negotiating a second joint venture, also to be located at Bokaro.

This apart, SAIL will participate in DVC's proposed 1,000-MW plant at Durgapur by providing land.

DVC sources said the corporation was actively negotiating the setting up of fresh generation capacity in partnership with SAIL. The plant is to be located on land currently under Bokaro Steel Plant's control.

While details of the plant capacity and the joint venture are yet to be finalised, DVC has conducted a feasibility study for setting up a 500-MW unit in Bokaro. SAIL has agreed to buy a minimum of 200 MW, in addition to the supplies from Bokaro Power Supply Company.

A 50:50 joint venture, Bokaro Power Supply Company was created when SAIL decided to invite partners from the power sector for running its captive generation units in four integrated steel plants. Accordingly, DVC had acquired operational rights over the 302-MW captive generation unit at the Bokaro Steel Plant.

While SAIL is expected to discuss the latest joint venture proposal in Bokaro at its next board meeting, the sources said that unlike the case of Bokaro Power Supply Company, DVC is likely to hold a majority stake in the new venture. SAIL's participation will be restricted to providing land and a commitment to buying power.

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