Damodar Valley Corporation and Tata Power Co, on 2 September 2005, signed the shareholders' agreement for implementing the 1,000 MW Maithon Right Bank project.

Tata Power will hold 74 per cent in the joint venture company -- Maithon Power Ltd -- while DVC will hold the remaining 26 per cent. Power Finance Corporation will lend to the Rs.4,000 crore project that has a debt-equity ratio of 70:30.

DVC, which has an installed generation capacity of about 3,000 MW, plans to add another 9,000 MW generation capacity in Jharkhand and West Bengal by March 2012 -- the end of the XI Plan. Besides, Maithon Right Bank project, MPL is also likely to execute the 2,000 MW Maithon Left Bank project.

DVC has also proposed to form joint ventures for executing the 1,000 MW Ramgarh plant and the 1,000 MW Panchet project. Besides, DVC has also formed a 50:50 joint venture with SAIL for a 1,000 MW project at Bokaro.

Other developments: PFC has approved a loan of Rs.1,456 crore for setting up two units of 250 MW each at DVC's coal-based Mejia extension project in West Bengal and Rs.1,435 crore for adding similar capacity at the Chandrapura extension project in Jharkhand. Both these projects have reached financial closure and are likely to be commissioned before March 2007. The total estimated cost of these two projects is Rs.4,133 crore of which the Rs.2,891 crore represents the debt component.