Tata Power, DVC talks on Maithon may fail

The Tata Power and Damodar Valley Corporation (DVC) talks on Maithon Power Ltd seem headed for failure with both parties insisting on a majority stake.

As a result, DVC may set up the project alone. The state run generation company had earlier agreed to the suggestion of reducing its stake in the wholly owned subsidiary to 49 per cent, but it has now changed its stand and has decided on retaining at least 51 per cent in the project.

Tata officials said that Tata Power had earlier asked for 74 per cent stake, but later scaled it down to 51 per cent. "We would be comfortable with a 51 per cent holding in Maithon," she said.

DVC officials said if talks fail, they would go ahead with the project themselves. "Funds are not a problem us and we have access to cheap money from Power Finance Corporation," he said.

He also said that the chairman has been provided with the task of negotiating and pursuing with the issue and try and solve the issue amicably.

DVC chairman Ajay Shankar, who convened a press meet yesterday to declare the results, said that the issue will be decided soon. The DVC board is expected to meet in the next fortnight for this.

DVC to raise Rs 2800 crore: Damodar Valley Corporation (DVC) has decided to raise around Rs 2,800 crore from Power Finance Corporation (PFC) to finance its ongoing power projects. DVC's requirement for the two projects is around Rs 4,000 crore, 70 per cent of which will be funded by the power funding agency.