Multipurpose project Damodar Valley Corporation (DVC), now reeling under losses, would hive off its stake in the Raghunathpur thermal plant in Purulia by forming a JV with state-owned Neyveli Lignite Corporation (NLC).
"The talks with NLC are at an advanced stage. SBI Caps will submit its report shortly," DVC chairman Andrew W Langstieh told reporters here today.
For the 2X600 MW plant at Raghunathpur, DVC was able to secure PPAs for 550 MW only.
NLC, on the other hand, was having PPAs for 650 MW which it secured from a Karnataka power plant which had got delayed.
"It is a perfect fit as DVC has the power but no PPAs and vice-versa for NLC. The Karnataka government had also given its no-objection to the deal with DVC," the chairman said.
NLC will have 74 per cent stake in the JV while the remaining 26 per cent will be with DVC.
"Since DVC had a huge loan burden for the Raghunathpur plant, it will have to make some sacrifice for shelling out 74 per cent to NLC," he said.
The proceeds of the stake sale would be used to repay the debt, he said.
Earlier, talks between DVC and NTPC could not crystallise into a deal.
During the last financial year, DVC had been able to recover dues worth Rs 4,770 crore from the Jharkhand government.
Turnover during the last fiscal would be around Rs 13,000 crore, the chairman said.
"This fiscal will be even better. Things are looking up for DVC," he said.
