DVC’s thermal unit to go on stream soon…

The maiden 500 mw unit of Durgapur Steel Thermal Plant being established by Damodar Valley Corporation is set to start commercial generation by end of January. The unit was put on stream in July 2011.

In a bid to achieve completion of 2 x 500 mw capacity addition in the 11th Plan Period, another unit of the same size is expected to be commissioned by March 2012.

The company is presently operating a total capacity of about 3,800 mw of which about 3710 mw is thermal while the rest at 144 mw is hydel. DVC has decided to add 4000 mw of fresh power generation capacity in the 12th Plan Period which starts from April 2012. The units will be put up depending on coal availability for the units.

The company is in talks with Life Insurance Corporation for raising funds through government guaranteed bonds, in order to finance its expansion plans. The power generator plans to raise a total of Rs 4400 crore from LIC and a clutch of banks for financing its capital expenditure through such bonds.

The company has been financing its projects on a 70:30 debt equity ratio.