Tata Power Company (TPC) has signed an MoU with the Damodar Valley Corporation (DVC) for the proposed 1000 MW Right Bank Thermal Power Project being developed by Maithon Power. According to a release by Tata Power to the BSE, TPC will hold a 74% stake in the venture, with the government-promoted Damodar Valley Corporation (DVC) holding a 26% stake. The company will be entitled to nominate up to seven directors and DVC will get to nominate up to three directors on the board of directors of the company. The company will also be entitled to nominate a chairman and managing director of the company out of its nominee directors.As per the agreement, prior to financial closure, DVC will have the option to enter into a bankable power purchase agreement with TPC, to purchase up to a specified quantum of power, which is to be intimated prior to execution of the shareholders agreement, on such terms acceptable to the respective JV parties and lenders funding the project. Execution of the shareholders agreement is subject to satisfactory due diligence by the company, within 6 months, the release said.F A Vandrevala, Managing Director of TPC said, "This Joint Venture is a public-private partnership towards meeting the power supply needs of the country. For Tata Power, the venture also marks an initiative towards acquiring a truly national footprint and sourcing power at economic rates for the end consumer. The Agreement marks a successful trend and offers hope for more such joint initiatives for the power sector in the future", the release added.
