DVC reverses stand, seeks majority in Maithon joint venture

Damodar Valley Corporation (DVC) has decided to hold a 51 per cent stake in Maithon Power Ltd (MPL). At its last board meeting, DVC decided it wanted a major share in MPL.

The state run generation company had earlier agreed to a 49 per cent stake, but it now wants at least 51 per cent in the project. Tata Power had earlier asked for a 74 per cent stake, but later scaled it down to 51 per cent.

"We have not heard anything from DVC on the holding issue," said Ashok Uppal, general manager, eastern region, Tata Power, told the press at the sidelines of a CII seminar on 'Enhancing Energy Efficiency'. "We hope there would be some positive developments in the next board meeting," he added.

With DVC insistent on majority stake in MPL, Tatas would now have to decide whether they want to participate in the project or not. If Tata Power refuses the offer, DVC would have to set up the plant on its own or look for another partner.

Uppal said Tata Power was keen to be associated with the 1000 mw Rs 4,000 crore Maithon Right Bank power project. Tata Power has sought three coal blocks with 300 million tonne of reserve from the Jharkhand government.

The coal block allotment has been cleared by the Central Electricity Authority (CEA), the state government and the ministry of power. Clearance from the ministry of coal was pending. Coal from the blocks would be used by the Maithon and Jojobera power plants. MPL has already acquired around 500 acres of land and has clearance from ministry of environment and forest for an additional 400 acres.

TPL was initially offered a 45 per cent stake in MPL after the Reliance-owned BSES pulled out of the project. MPL was originally conceived with a debt equity ratio of 70:30 with the promoters collectively investing Rs 1,200 crore.

Meanwhile, Tata Power has expressed interest in the distribution segment in eastern India, specially Jharkhand. The company has already completed surveys of the areas where it would like to sell power and is developing a working plan.

"TPL is yet to apply to the electricity regulatory commissions for approval," Uppal added.