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JUL 01 2013

Confident of Rs 6,000 cr financial closure by July: DVC

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 01st JUL 2013

In spite of fuel supply issues and a dull power market, Damodar Valley Corporation (DVC) is confident of completing the financial closure of 1,320 MW (660MWx2) Raghunathpur stage II thermal power plant by July.

"We expect to sign the financial closure of Rs 6,000 crore Raghunathpur TPP stage II by July," DVC Chairman R N Sen told reporters here in an interaction over the weekend.

Sen did not foresee any issue in financial closure despite bankers turning pessimistic on the sector.

The first 600 MW TTP unit of stage-I will be operational by this fiscal, while the second will do so in 2014-15, he said.

Among the power plants that would seek fuel supply agreement (FSA) soon for coal linkage with Coal India, include the one at Raghunathpur in Purulia district of West Bengal.

The other power plants of DVC that will sign the FSA shortly are Durgapur (500MWx2), Mejia (500MWx2) and Chandrapura (250MWx2).

Once these FSAs are signed, the coal linkage for DVC would stand increased to 25 million tonnes from 12.5 million tonnes per annum currently.

"The total linkage required for DVC for the projects in the 12th plan period is to the tune of 50 million tonne per annum," he said.

DVC, which posted a profit of Rs 180 crore for 2012-13 was expected to get a boost after Jharkhand State Electricity Board had agreed to clear at least Rs 3,000 crore undisputed accumulated dues at Rs 250 crore per quarter from 2013-14, besides meeting the current dues.

The disputed due is Rs 2,000 crore, which is pending before the appropriate authority, Sen said.

Asked about plans to raise resources in the current fiscal, Sen said it was possible but nothing had been firmed up.

In 2012-13, DVC had raised Rs 2,400 crore through bonds to part finance its expansion plans.


Jharkhand West Bengal Damodar Valley Corporation Mejia Thermal Power Plant (DVC) Damodar Valley Corporation Coal State Electricity Board Fuel Supply Agreement power market Electricity India

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