Calcutta, March 5: The Damodar Valley Corporation (DVC) has signed power purchase agreements with five electric supply companies of Karnataka. The thermal power utility will supply 450 megawatts to the state.
The bid to venture out of Bengal and Jharkhand will help the DVC to sell its surplus power and generate additional revenue through its distribution arm. According to the power purchase deals, the DVC will supply the power at rates set by the Central Electricity Regulatory Commission for 25 years.
Former DVC chairman R. N. Sen had earlier said the adoption of the Electricity Act, 2013, will enable the power entity to move beyond its command areas and explore opportunities in other parts of the country. It has been looking to sell its surplus power, particularly in the south, because of the demand from these states.
The DVC has a surplus power of around 1,000MW, both through its own generation and purchase from other power utilities such as NTPC, NHPC and Maithan Power (a joint venture of DVC with Tata Power).
It earned a total income of Rs 11,217 crore in 2012-13, while its net profit stood at Rs 392 crore after registering losses in the two previous financial years. It is eyeing over Rs 500-crore profit in 2014-15.