The Damodar Valley Corporation Ltd might “drop” plans to transfer its Raghunathpur thermal power plant to a joint venture with NLC India Ltd, owing to a delay in getting clearance for the proposal from the West Bengal government.
The DVC has been incurring losses due to the 1,200-MW Raghunathpur power plant, the estimated financial bleeding at Rs 70 crore per month.
“We are working on alternatives for Raghunathpur project since we have not received nod for the JV with NLC for the last two years. The alternative includes dropping the joint venture plan,” a top DVC official, who requested anonymity, told.
The official said DVC could even explore the option of reviving the Raghunathpur power plant on its own.
According to the joint venture scheme, Chennai-based NLC India (formerly Neyveli Lignite CorporationBSE -1.48 %) was to acquire 74 percent stake in Rs 5,500-crore Raghunathpur project, while DVC would retain the remaining 26 percent.
The Centre, West Bengal and Jharkhand are equal shareholders of DVC.
While both the Centre and Jharkhand have approved the joint venture scheme, West Bengal is yet to follow suit, as it wants DVC to resolve a pay-related dispute with a section of employees.
“DVC shouldn’t be setting conditions for accepting workers’ demands, This is not acceptable to us,” West Bengal Power Minister Sovandeb Chattopadhyay had earlier said.
Source: Economic Times