Coal India (CIL) and Damodar Valley Corporation (DVC) have signed a preliminary agreement (MoU) to work together to build a 2×800 MW coal-fired power plant in Jharkhand with an investment of Rs 16,500 crore.

The new power plant will be an addition to the existing Chandrapura Thermal Power Station (CTPS), which currently has a capacity of 2×250 MW. 

DVC, which produces a lot of power in Jharkhand and West Bengal, will partner with CIL, sharing costs and ownership equally in a new joint company for this project.

The plant will use advanced technology that is more efficient and pollutes less than older coal power systems. It will get its coal from nearby mines run by companies linked to CIL.

The agreement states that the joint company will be owned 50% by each partner. This shows that both government-owned companies are equally committed to improving the power setup in the area.