Calcutta: The Bharatiya Mazdoor Sangh-affiliated union at Damodar Valley Corporation (DVC) has requested the central government to allow the thermal power generator to retain the 1,200 megawatt Raghunathpur power project in Bengal.

Discussions were underway to transfer the project to a 26:74 joint venture company between DVC and Neyveli Lignite Corporation (NLC).

If the joint venture becomes operational, DVC could also tie up idle capacity as NLC already had power purchase agreements in place. The hive-off, even at a haircut, was considered financially beneficial for DVC, easing the debt burden of the government-owned firm.

"The situation has changed remarkably. DVC has received a good portion of dues from the Jharkhand government, the customer base has improved, coal supply has been ensured through the RcR (road-cum-rail) process and railway connection is on the verge of completion. DVC has already endured preliminary troubles of high interest and high fuel cost," Sujit Roy, general secretary of DVC Mazdoor Sangh, said in his letter to Union power minister R.K. Singh.

Roy further said that the actual cost of the project was Rs 9,398 crore, while the Central Electricity Regulatory Commission has approved an amount of Rs 6,263 crore.

"Considering the above facts, the members of the DVC are earnestly requesting you to consider our plea to retain RTPS in DVC," the letter said.

DVC has clocked an all-time high generation of 5,409MW on February 22 and has also secured power supply of 300MW to Bangladesh.