Kolkata: Damodar Valley Corporation (DVC) has signed a long-term Power Purchase Agreement (PPA) to supply 300 MW of thermal power to Karnataka’s five state electricity distribution companies (DISCOMs), marking a key step in strengthening inter-regional power cooperation.
The agreement, finalised at the headquarters of Power Company of Karnataka Limited (PCKL), will source power from the upcoming Koderma Thermal Power Station Phase-II in Jharkhand, which will have a total capacity of 1,600 MW (2×800 MW).
This latest PPA builds on DVC’s existing supply of 450 MW to Karnataka and signals the utility’s continued expansion beyond its traditional operational zones in eastern India. Officials from DVC, PCKL, and the five DISCOMs jointly signed the agreement on June 30.
DVC Member (Finance) Arup Sarkar noted the agreement is aligned with the utility’s ongoing efforts to add new generation capacity and supply power to high-demand regions. Karnataka, which faces seasonal power shortages due to rising consumption, has been securing long-term thermal supply contracts to stabilise grid demand.
The Koderma Phase-II plant, from which the 300 MW will be drawn, is still under construction and is one of three thermal projects currently being developed by DVC. The others include Raghunathpur Thermal Power Station (RTPS) Phase-II and additional capacity expansion projects. Together, these projects are expected to add a combined 3,720 MW to the grid in the coming years.
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