The Hindu Business Line : Tatas set to pick 74 pc stake in Maithon Power

, AFTER more than two years since initiating talks with Damodar Valley Corporation (DVC) for participation in Maithon Power Ltd (MPL), Tata Power Ltd is finally set to pick up 74 per cent stake in the joint venture on Wednesday.

With this, the four-year long stalemate, over commissioning of 1,000 MW (2 X 500 MW) thermal power plant on the right bank of Maithon hydel power station (of DVC) in Jharkhand, is finally expected to end. The project is estimated to cost roughly Rs 4,000 crore.

According to a senior DVC official, the board of directors of the corporation will meet on November 30 to offer Tata Power 74 per cent stake in MPL. The latter is currently a wholly owned subsidiary of DVC. The DVC board meet will be followed by an MPL board meet — also on November 30 — to implement the decision.

Though both the joint venture partners have already expressed their intention to start commissioning by June 2006, informed sources say the project could face a stiff hurdle in the inadequate coal linkage. Bharat Coking Coal Ltd, which had earlier assured the complete coal linkage, had recently backtracked from its position and has settled for merely 50 per cent of the requirement. In view of the coal problem, the project may either be delayed or downsized.

DVC has already carried out the detailed feasibility report and other groundwork required for commissioning the project. The corporation has also acquired close to 500 acre out of a total requirement of around 1,000 acres. The rest of the land will be culled from forest areas. DVC has already identified land, which can be exchanged with the forest authorities.

According to sources, but for the emerging coal crisis, Tata Power authorities could have straightaway gone for ordering of equipment for the project. "However, the situation has once again turned a bit uncertain after BCCL revised its promised supply of coal," the official said.

According an agreement already signed between DVC and Tata Power, DVC will get an assured supply of 300 MW from MPL. The additional supply may largely be used for exports. DVC currently exports 200 MW through open tender over and above meeting the requirements of West Bengal and Jharkhand. It may be mentioned that DVC had originally floated MPL as a 50:50 joint venture with BSES Ltd at least four years ago. The latter left the project midway, selling its stake in MPL to DVC, as it was more keen on setting up gas-based power projects. Though Tata Power showed interest in the project from 2003, it insisted on majority control, which resulted in delays till the issue was settled earlier this year.

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