Shares of Coal India are drawing attention after the company revealed a major partnership with Damodar Valley Corporation (DVC) to build a coal-based power plant in Jharkhand. Currently, Coal India’s share price stands at ₹404.80, marking a 1.12% increase.
Coal India and DVC’s Strategic Partnership
Coal India has teamed up with Damodar Valley Corporation (DVC), a Jharkhand-based power company, to develop a 2×800 MW ultra-supercritical thermal power project. The two companies signed a non-binding Memorandum of Understanding (MoU) on Monday in Kolkata to formalize the partnership.
Project Details and Investment
This project will be a joint venture between Coal India and DVC, with both companies holding an equal 50% stake in the venture. The power plant will be an expansion of the existing Chandrapura Thermal Power Station (CTPS), which currently operates with a capacity of 2×250 MW.
The new plant will add two 800 MW units, significantly boosting the station’s capacity. The total investment for this major project is estimated at ₹16,500 crore. The expansion aligns with the Indian government’s goal to increase the country’s installed power generation capacity by about 80 GW by 2030.
Strategic Location and Cost Efficiency
One of the key advantages of this project is its location. The new power plant will be located near Coal India’s existing coal mines, specifically those operated by Bharat Coking Coal Ltd (BCCL) and Central Coalfields Ltd (CCL). This proximity to coalfields will help reduce transportation costs, making the power generation process more efficient and cost-effective.
Upcoming Financial Review
In addition to the project news, Coal India has announced that its Board of Directors will meet on May 7, 2025, to review and approve the audited financial results for the fourth quarter and full financial year ending March 31, 2025. The board will also consider recommending a final dividend for FY25, which will be closely watched by investors.
Conclusion
The partnership between Coal India and DVC marks a significant step in the expansion of thermal power generation in India. With a large investment of ₹16,500 crore and the strategic location of the power plant, this project is expected to contribute significantly to India’s power sector and improve the company’s market performance. Investors are optimistic about the growth prospects of Coal India, especially with the efficient cost structure of the new plant and the company’s focus on expanding its capabilities in thermal power generation.
