Damodar Valley Corporation (DVC) has signed an agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) to supply 600 MW (megawatt) of power from the second phase of the 1320 MW thermal power project at Raghunathpur in Purulia district of Bengal.

This would be the first time DVC would supply power to Gujarat. Beyond its command area spread over Bengal and Jharkhand, DVC also supplies power to Delhi, Punjab, Madhya Pradesh, Karnataka and overseas to Bangladesh.

DVC sources confirmed the development stating that the move is part of the power utility’s efforts to secure power purchase agreements for its proposed capacity additions.

DVC has plans to add 3720 MW thermal power capacity and 2500 MW of pump storage projects, and is also expanding into the renewables sector to have an aggregate capacity of more than 15,000 MW by 2030. The estimated capital requirement across projects could be to the tune of around ₹60,000 crore.

The thermal power major is setting up two units of 660 MW each at Raghunathpur in the second phase. The power utility currently has two operating units of 600 MW each at the location.

The power supply will begin after the project is expected to be commercially operational by 2027-28. In addition, DVC is setting up two units of 800 MW each at Koderma as part of the second phase expansion of the project in Jharkhand.

Last month, DVC finalised the tender for the EPC (engineering, procurement and construction) of the expansion at Koderma with Bhel for ₹13,300 crore.

A new unit of 800 MW is also being set up at Durgapur besides two pump storage projects of 1500 MW and 1000 MW at Jharkhand and Bengal, respectively.

While DVC has stepped up coal production from its captive mines at Tubed in Jharkhand, the power utility last month signed
a memorandum of understanding with NLC India for procurement of 2 MTPA of coal from Talabira II and III mine.