Coal India Forms JV with Damodar Valley Corporation for Brownfield Expansion

Coal India Limited (CIL) and Damodar Valley Corporation (DVC) signed a joint venture agreement on November 7, 2025, in Kolkata. As per the exchange filings, the agreement involves forming a new company to set up a 2×800 MW brownfield thermal power expansion project at DVC’s existing Chandrapura Thermal Power Station in Jharkhand. 

Both entities will also look at the possibility of taking up other thermal and renewable energy projects together in the future.

Objective of the Agreement

The project aims to increase power generation capacity to meet the growing electricity demand in the DVC valley area and other parts of India. The collaboration also includes exploring projects that combine conventional and renewable energy sources, with or without storage facilities.

Company Details

The proposed joint venture company will be registered as a Private Limited Company in West Bengal. It will have an initial paid-up capital of ₹10 lakh and an authorised share capital of ₹10 crore, divided into 1 crore equity shares of ₹10 each. The new company will handle the implementation and operation of the Chandrapura expansion project.

Ownership and Governance

Both CIL and DVC will hold equal stakes of 50% each in the joint venture. Each organisation will have the right to nominate three executives as directors on the company’s board. A lock-in period of five years from the Commercial Operation Date (COD) of the project will apply, during which no shareholder can transfer its equity shares.

Regulatory Information

The agreement does not qualify as a related party transaction. CIL is a Central Public Sector Enterprise, while DVC was established through an Act of Parliament in 1948. Shares will be issued in proportion to the agreed shareholding once the new company is incorporated.

Read More: Coal India Signs MoU for Critical Minerals Exploration!

Coal India Share Price Performance 

As of November 10, 2025, 10:15 AM, Coal India share price was trading at ₹377.95, a 0.52% increase from the previous closing price.

Conclusion

Coal India and DVC have formalised their joint venture to develop the Chandrapura Thermal Power expansion and explore additional energy projects in the future. Further details or amendments will be shared with stock exchanges as required.

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