NLC planning to acquire DVC's 1,200-mw thermal power proj

State-run Neyveli Lignite Corporation (NLC) is planning to acquire Damodar Valley Corporation's 1200 mw Raghunathpur Thermal Power Project (RTPP) through a joint venture company.

"NLC has initiated actions to acquire power assets and in this regard one of the proposals under consideration is the acquisition of 1,200 mw Raghunathpur Thermal Power Project (RTPP) of Damodar Valley Corporation (DVC) through a joint venture company (JVC) proposed to be formed with the DVC with the equity shareholding of 74:26 by NLC and DVC," the company said in a BSE filing.

RTPP consists of two units of 600 mw and both the units were commissioned in March this year. "As per the proposal, the project cost was determined by CERC/APTEL for the purposes of arriving at the final tariff for power or such cost as mutually agreed between NLC and DVC would be the consideration value for the transfer of...project assets to the JVC," it said. NCL being a government company, the proposal for investment in the JVC is required to be sanctioned by the government.

The Ministry of Coal, the administrative ministry, in consultation with other ministries is in process of submitting the proposal to the Cabinet Committee on Economic Affairs for sanction of investment decision.

"On obtaining the sanction from the government... further course of actions with regard to entering into joint venture agreement and formation of JVC with the DVC will be undertaken subject to obtaining necessary statutory and other administrative approvals," it said.