"Talks are going on. Hopefully it will fructify shortly and we are awaiting for approvals," DVC Chairman Andrew W K Langstieh said here on Friday.
According to sources, DVC has already applied for approvals from its shareholders, West Bengal and Jharkhand and Union power ministry, which is likely in a month. DVC will hold around 30 per cent and rest by NLC in the new SPV for the project.
The original project cost was Rs 5,000 crore and was supposed to be completed in 2011. The cost overrun is of Rs 3,800 crore, due to interest costs.
Langstieh said the two units of 1,200 mw Raghunathpur project have already started commercial operation on March 31, this year but DVC has power purchase agreements of 550 mw.
NLC, which is yet to set up a new thermal power unit, has PPAs of 650 mw in Karnataka. So both the corporations have decided to form a JV following clearances from the power and coal ministries, Langstieh said. DVC is a three-way venture of the Union, Jharkhand and West Bengal governments.