Neyveli Lignite Corporation is likely to buy at least 75 per cent stake in Damodar Valley Corporation’s 1,200 megawatt Raghunathpur thermal power project.
DVC chairman AWK Langstieh said the deal is at an advanced stage and will be concluded in the next one month. SBI Caps is working on the deal. The project, located in West Bengal’s Purulia district, has been delayed by five years and has witnessed a total cost overrun of about Rs 3,800 crore to Rs 8,800 crore. DVC will have to take a haircut for majority of this amount. Bulk of the cost increase has been on account of interest paid by the company during construction due to the delay, rising land cost and inflation of equipment.