Indian coal-mining group Damodar Valley Corporation is in advanced negotiations with Neyveli Lignite Corporation on the sale of a 75% stake in its 1,200 MW Raghunathpur coal-fired power project in the Purulia district of West Bengal (India).
The first phase of the project consisting of two 600 MW units was commissioned in 2013 and 2014, but only the first unit is operating (second unit stuck due to the absence of infrastructure for water and coal supply). In addition, DVC is facing financing difficulties in the construction of the second phase of two 660 MW units, though equipment contracts have been placed with BHEL and BMR (five-year delay and cost overrun of Rs 38bn, i.e. US$566m to Rs 88 bn (US$1.3bn)). The company is heavily indebted and may not be able to complete the construction of the project.
In 2015, DVC reached an agreement with India's largest thermal power generation company NTPC, to take over the plant, but the transaction failed.
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