Damodar Valley Corporation (DVC) is expected to spin off its 1200 MW Raghunathpur project in West Bengal by forming a joint venture with Neyveli Lignite Corporation Ltd (NLC) this quarter.
Andrew W Langstieh, Chairman, DVC, told reporters here on Friday that NLC will hold 74 per cent majority stake in the joint venture and DVC the balance 26 per cent. “SBI Capital Markets is doing the financial and technical due-diligence exercise for the deal, which is likely to be wrapped up in the first quarter of 2016-17,” the DVC Chairman said. He said SBI Cap has already given the initial report. “The final report is being awaited,” he added. The coal-fired 2 X600 MW DVC project, built at Rs. 8,100 crore, was hit by low capacity utilisation. The project is saddled by debt burden of around Rs. 3,500 crore.