DVC Raises Capex By 36% To Rs 2,800 Cr In FY24, Plans To Import Coal

Damodar Valley Corporation has raised its capital expenditure target for the 2023-24 fiscal to Rs 2,800 crore, a 36 per cent increase over the previous year, to support expansion plans, a top official said on Thursday.

The entity owned jointly by the Centre, West Bengal and Jharkhand governments, achieved the highest power generation in its 75 years of existence, with a nearly 6.5 per cent year-on-year rise to 43.32 billion units in 2022-23.

Its sales stood at Rs 24,522 crore in the year, the official said.

"Capex (capital expenditure) in the 2022-23 fiscal was 102 per cent of the target of Rs 2,055 crore. In the current financial year, the capex target is Rs 2,800 crore. The funds will be utilised in placing new expansion orders, mining and renewable energy," DVC chairman Ram Naresh Singh said.

DVC has ambitious expansion plans, intending to add a total of 9,654 MW of capacity to its existing 6,700 MW from all sources, with a goal of increasing its generation capacity to 15,000-16,000 MW by 2030, he said.

The total investment to roll out these projects will be around Rs 60,000 crore, DVC member (finance) Arup Sarkar said.

The expansion plan includes 3,720 MW of thermal power, a pump storage plant of 2,500 MW, and 3,434 MW of solar energy.

The corporation said it is dedicated to ensuring that the power distribution system is not just reliable but also sustainable, with a focus on reducing carbon emissions and meeting regulatory standards.

As a result, the new projects are geared towards sustainability, with solar and pump storage accounting for nearly 5,900 MW of the fresh capacity, out of a total of 9,654 MW, Singh said.

He also mentioned that the corporation is also focusing on green hydrogen and battery storage projects at Bokaro.

The capex for green hydrogen has been estimated at Rs 500-600 crore and a 100-MW storage battery would cost roughly Rs 1,000 crore, Singh said.

DVC will also install 310 MW of floating solar projects at Panchet and Tilaiya in a joint venture with NTPC.

The corporation will hold 49 per cent stake in the JV.

DVC member technical M Raghu Ram said that the company is investing Rs 4,000 crore in installing flue gas desulfurisation (FGD) and DeNOX systems in 13 thermal power plants across its operations to reduce carbon emissions and comply with regulatory standards.

"The new thermal projects will be of critical and super-critical plants of 660 MW and 800 MW for better efficiency," Ram said.

Speaking about coal security, Singh also mentioned that DVC has begun production from its Tubed coal block in Jharkhand, with a peak production capacity of six million tonnes.

To maintain power supply during peak summer, DVC will import 5 lakh tonne of coal by September.

The government has allowed a mix of up to 6 per cent of imported coal to overcome shortages from domestic production.

Meanwhile, DVC had engaged E&Y to evaluate its retail power distribution ambition at Giridhi, the official added.