On 27 September 2006, Union Power Minister Mr. Sushil Kumar Shinde conducted the groundbreaking ceremony for the 1,000 MW Maithon (Right Bank) power project in Jharkhand. The project is being implemented by Maithon Power -- a 74:26 joint venture between Tata Power and Damodar Valley Corporation. It is the first PPP initiative in the power generation sector.

The project to spread over 1,200 acres of land will have two units. The Rs.3,800 crore project will be funded through a 70:30 debt-equity ratio. Tata Power will contribute Rs.840 crore as equity, with DVC contributing about Rs.300 crore. Financial closure for the project is likely by mid-2007.

The project has received all  major clearances, including those from the Pollution Control Board and MoEF. Long-term coal linkage have been established from BCCL mines and water allocation is from the adjacent Maithon reservoir. Work on Unit I and Unit II is scheduled for completion by end-2009 and mid-2010 respectively.

Power from the Maithon project is to be exported to power deficit western and northern states and for meeting the requirements of DVC.  The shareholders agreement with DVC for the project was signed in September 2005.

Also See:

Maithon power project: Agreement signed (03-Sep-05)

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