Tata Power Co, on 29 March 2005, announced the signing of an MoU with public sector Damodar Valley Corporation for the 1,000 MW Maithon Right Bank Power Project coming up at Maithon in Dhanbad district of Jharkhand.

A joint venture -- Maithon Power Ltd - is implementing the project. Tata Power Co will hold 74 per cent in the JV with public sector DVC holding the remaining 26 per cent.

The agreement is reportedly the first initiative in the field of power generation, under the provisions of the Electricity Act, 2003.

According to the MoU, DVC, prior to the financial closure of the project, will have the  option to enter into a bankable power purchase agreement with TPC, to purchase a specified quantum of power.

TPC had earlier entered into public private partnerships (PPP) with North Delhi Power Ltd for power distribution in north India. It is also involved in the 400 kV Tala Transmission project through Powerlinks Transmission Ltd. TPC has thus entered into PPPs in each of the three areas of power generation, transmission and distribution.

For detailed report on the Maithon Power project, click here.