A new power plant is coming up in Chandrapura in the Bermo subdivision of the Bokaro district, Jharkhand.

The new coal fired plant is planned to be an extension of the Chandrapura Thermal Power Station, a thermal-coal based power generation unit of Damodar Valley Corporation (DVC).

Now, Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have signed a non-binding Memorandum of Understanding (MoU) to jointly set up a 2x800 megawatt (MW) ultra-supercritical thermal power plant in Jharkhand with a proposed investment of ₹16,500 crore.

"The total investment would be to the tune of ₹16,500 crore. The joint venture company would be on a 50 per cent equity sharing basis," the statement reads.

The coal-fired power plant will be developed as a brownfield expansion of the existing Chandrapura Thermal Power Station (CTPS), which currently has an installed capacity of 2x250 MW. 

The new project will be implemented by a joint venture company with equal equity contribution from both state-run entities.

The MoU was signed in Kolkata in the presence of CIL Chairman P.M. Prasad and DVC Chairman S. Suresh Kumar. The agreement was formalised by CIL Director (Business Development) Debasish Nanda and DVC Member (Technical) Swapnendu Kumar Panda.

Coal for the upcoming plant will be sourced from coalfields of Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL), both subsidiaries of CIL. DVC is a thermal and hydro power generator operating across Jharkhand and West Bengal.

The collaboration marks CIL’s latest initiative in the thermal power generation sector as part of its business diversification strategy.