Coal India and DVC form JV to build 1,600 MW Chandrapura thermal plant
Author: PPD Team Date: November 10, 2025
Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have signed a Joint Venture Agreement (JVA) to set up a 1,600 MW coal-based power plant at DVC’s existing Chandrapura Thermal Power Station (TPS) in Jharkhand. The agreement was signed on November 7, formalising a 50:50 partnership between the two public sector entities.
The project involves installing two ultra-supercritical units of 800 MW each, with an estimated total cost of around Rs 21,000 crore. The new joint venture company will be incorporated as a private limited entity, with both partners holding equal equity.
Coal for the plant will be supplied by Central Coalfields Limited, a Jharkhand-based subsidiary of CIL, ensuring reliable and cost-effective fuel sourcing. The project is expected to begin commercial operations by FY 2031–32 and is positioned to meet growing regional and national electricity demand.
Officials stated that the project’s brownfield location offers significant logistical advantages, as it will utilise DVC’s existing infrastructure, including land and power evacuation systems. This is expected to shorten construction timelines and improve cost efficiency.
A senior CIL official stated that the collaboration between CIL and DVC aims to strengthen India’s baseload power capacity and enhance system reliability. The plant’s location in a coalfield area is expected to keep variable costs competitive.
The joint venture company will have an authorised share capital of Rs 10 crore, with each partner nominating three representatives to the board of directors. A five-year lock-in period from the plant’s commercial operation date will prevent either entity from transferring its equity share during that time.
In addition to the Chandrapura project, the new venture will explore future collaborations in both thermal and renewable energy generation, including projects with storage integration.
The JVA follows a memorandum of understanding signed in April 2025, following the Power Ministry’s approval of the project proposal.
