Coal India and DVC Sign Rs 21,000 Crore JVA for 1,600 MW Coal Power Project in Jharkhand
DSIJ Intelligence-2 / 08 Nov 2025/ Categories: Mindshare, Trending
The stock price is trading at 7 per cent up from its 52-week low.
State-owned enterprises Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have entered into a Joint Venture Agreement (JVA) for a Brownfield Expansion project worth Rs 21,000 crore. The agreement focuses on setting up a 1,600 MW coal-fired thermal power plant at DVC’s existing Chandrapura Thermal Power Station in Jharkhand. The project will feature two ultra-supercritical units of 800 MW each.
The joint venture marks an equal partnership between CIL and DVC, with both entities sharing 50:50 equity. The commercial operations are targeted to commence by FY 2031–32. Coal for the project will be supplied by CIL’s subsidiary, Central Coalfields Limited, which operates in Jharkhand.
According to a senior CIL official, the collaboration aims to enhance India’s baseload generation capacity by leveraging existing infrastructure at Chandrapura for efficient resource use and quicker project execution. Since it is a brownfield project, key assets such as land and connectivity are already available, reducing delays. The location in a coalfield area is also expected to make the project’s variable cost competitive.
The JVA signing follows a Memorandum of Understanding (MoU) signed between CIL and DVC in April 2025 after receiving approval from the Power Ministry. Both organisations plan to explore future opportunities in thermal and renewable energy through this partnership.
Coal India Limited (CIL), a Maharatna company under the Ministry of Coal, Government of India, is primarily engaged in the mining and production of coal and also operates coal washeries. Incorporated in 1975 as Coal Mines Authority Limited following the nationalisation of the coal sector, CIL is headquartered in Kolkata, West Bengal. Its major consumers include the power and steel sectors, while other key users comprise the cement, fertiliser, and brick kiln industries.
The stock price is trading at 7 per cent up from its 52-week low.
Disclaimer: The article is for informational purposes only and not investment advice.