Coal India and DVC to Invest ₹16,500 Crore in 1,600 MW Thermal Power Project in Jharkhand

Major Investment in Jharkhand’s Power Sector

Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have announced a joint venture to establish a 1,600 MW ultra-supercritical thermal power plant in Jharkhand, with an estimated investment of ₹16,500 crore. The power project will be strategically located between the Koderma and Chandrapura railway stations, optimizing coal logistics and infrastructure support.

Project Details

The plant will consist of two 800 MW ultra-supercritical units, aimed at enhancing energy efficiency while reducing carbon emissions compared to conventional thermal plants. The ultra-supercritical technology allows for higher pressure and temperature, resulting in better fuel efficiency and lower environmental impact.

Implementation and Funding

Bharat Heavy Electricals Limited (BHEL) has been awarded the Engineering, Procurement, and Construction (EPC) contract, while State Bank of India (SBI) will be the lead lender for financing the project. The construction and commissioning are expected to follow a strict timeline, with the first unit projected to be operational within the next four years.

Strategic Importance

This initiative marks a significant push by CIL and DVC to meet India’s growing energy demands while modernizing the nation’s thermal power infrastructure. It is also expected to generate employment opportunities during both construction and operational phases and contribute significantly to the regional economy.

Environmental Considerations

Despite being a coal-based power project, the adoption of ultra-supercritical technology underscores a shift toward cleaner thermal power generation. The plant will comply with all environmental regulations, including emission norms and water usage protocols.