New Delhi: Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have signed a pact to set up an ultra supercritical thermal power plant in Jharkhand, with a total investment of ₹16,500 crore. The non-binding Memorandum of Understanding (MoU) was signed on April 21st, in Kolkata.

The 2x800 MW coal-fired power plant will be located at Chandrapura in Jharkhand, as a brownfield expansion of the existing Chandrapura Thermal Power Station, which currently operates with a capacity of 2x250 MW. The proposed joint venture will be developed on a 50:50 equity basis between the two public sector undertakings.

“Widening further its business diversification portfolio into thermal power generation, Coal India Ltd formally joined hands with Damodar Valley Corporation to set up a coal-fired 2x800 MW ultra-supercritical power plant in Jharkhand,” CIL said in an official statement.

Ultra supercritical power plants operate at higher steam temperatures and pressures compared to conventional plants, resulting in greater efficiency and lower emissions.

Coal for the new plant will be sourced from nearby coalfields operated by CIL subsidiaries Bharat Coking Coal Ltd (BCCL) and Central Coalfields Ltd (CCL).

The MoU also outlines plans to explore opportunities for developing additional thermal and green energy projects, with or without storage, to meet the growing power demand in the DVC valley region.

The agreement was signed in the presence of CIL Chairman P.M. Prasad and DVC Chairman S. Suresh Kumar. It was formally executed by Debasish Nanda, Director (Business Development) at CIL, and Swapnendu Kumar Panda, Member (Technical) at DVC.

Coal India, which produces over 80% of India’s coal, is targeting a production of 875 million tonnes and an offtake of 900 million tonnes by 2025–26.

BI Bureau