Coal India Limited (CIL) and Damodar Valley Corporation (DVC) on 7th November 2025, signed a Joint Venture Agreement to set up a 2×800 MW Brownfield Expansion Thermal Power Project at DVC’s Chandrapura Thermal Power Station in Jharkhand. The agreement marked a strong partnership between the two public sector entities to strengthen India’s power generation capacity and energy security.
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Brownfield Expansion and Renewable Ambitions
The joint venture, established as a 50:50 partnership, will operate as a private limited company with an authorised capital of Rs. 10 crore and an initial paid up capital of Rs. 10 lakh. Apart from the Chandrapura expansion, the JV will explore opportunities in thermal and renewable energy projects, including hybrid systems with storage solutions. The initiative aims to meet the rising energy demand across the DVC valley and other industrial regions of eastern India.
Governance and Structure of the New Entity
As per the agreement, both CIL and DVC will nominate three executives each to the board of directors of the joint venture company. The registered office will be located in West Bengal, and a lock-in period of five years from the project’s commercial operation date (COD) has been set, during which no shareholder can transfer its equity shares. The structured governance mechanism ensures balanced decision making and long-term strategic collaboration between the two partners.
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Strategic Significance for India’s Power Sector
The collaboration between CIL, a Central Public Sector Enterprise, and DVC, a statutory body established under an Act of Parliament in 1948, marks a key step toward enhancing coal based power generation while gradually integrating renewables. The Chandrapura expansion will strengthen grid reliability in Jharkhand and adjoining states, contributing to the national objective of balancing energy security with cleaner generation. Officials said the venture reflects a broader trend of PSU partnerships aimed at optimising resources and accelerating the country’s energy transition.
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