Damodar Valley Corp Scraps Plan To Sell Plant To NLC India Joint Venture

Damodar Valley Corp Scraps Plan To Sell Plant To NLC India Joint Venture

 A bitter political spat involving the Centre and the states of West Bengal and Jharkhand has forced power utility Damodar Valley Corp. (DVC) to abandon its plan to sell a 1,200-megawatt (mw) plant to a proposed joint venture with NLC India Ltd (formerly Neyveli Lignite Corp.), putting at risk Rs21,000 crore of long-term loans that it is struggling to repay.

DVC, a pubic sector enterprise jointly owned by the Centre, West Bengal and Jharkhand, had two years ago reached an agreement with NLC to transfer the Raghunathpur thermal power station to a joint venture. NLC was to hold 74% in it and DVC, 26%. As stakeholders, the Centre and Jharkhand gave their consent, but West Bengal did not.

The DVC management has decided not to sell the unit, said Andrew W.K. Langstieh, the company’s outgoing chairman. “If the current rates hold, it may not be a bad idea for DVC to run the Raghunathpur unit and sell power through exchanges,” he said. Read More…

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