Coal India, DVC form JV to enter power generation

Coal India Limited (CIL), the state-owned Maharatna mining company, has incorporated a joint venture with Damodar Valley Corporation (DVC) to foray into the power generation business. The new entity, DVC CIL Power Private Limited, was incorporated on March 27, 2026, and has been allotted Corporate Identification Number (CIN) U35102WB2026PTC287644 by the Ministry of Corporate Affairs.

The development was disclosed to BSE and NSE under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. CIL had first announced its intent to form this joint venture in a regulatory filing dated November 7, 2025.

The two partners hold equal stakes in the venture, with Coal India and DVC each holding 50% of the initial share capital of 50,000 equity shares of Rs 10 each. The project is to be funded with a 30:70 equity-to-debt structure, with CIL’s equity infusion pegged at Rs 3,132.96 crore. Both DIPAM (Department of Investment and Public Asset Management) and the Ministry of Coal had provided the necessary governmental approvals for the incorporation.

The joint venture’s stated business scope is broad, spanning three key areas. In power generation, it will undertake planning, design, construction, and operation of projects based on thermal, hydro, and renewable energy sources, along with related businesses such as e-mobility infrastructure and water treatment. In transmission and distribution, it will establish and operate power systems under various models including BOT and BOOT arrangements, covering substations and transmission networks. The venture will also commercialise power plant by-products such as fly ash, silica, and FGD residues.

The incorporation marks a significant strategic pivot for Coal India, which has historically been focused on coal mining and has been under pressure to diversify as India accelerates its energy transition.

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