Calcutta, Sept. 9: The Damodar Valley Corporation is hoping to be back in black this fiscal, wiping off losses by recovering outstanding dues from distribution companies. The public sector power utility is also close to hiving off thermal power assets at Raghunathpur in Bengal to NTPC.

"The first quarter has been good for us. The revenue collection of Rs 1,350 crore in May 2015 was the highest ever in DVC's history," said DVC chairman Andrew WK Langstieh today. In 2014-15, DVC's losses have been to the tune of Rs 1,313 crore.

The chairman's comments come after Union power minister Piyush Goyal said the Centre was working on a sustainable plan for DVC to help it lower its interest burden and bring down losses this year.

Langstieh said that DVC's decision to transfer thermal power assets at Raghunathpur to NTPC could start taking shape by December this year.

"Because of DVC's stressed financial condition there is no way we can take this project forward. We have a debt burden of Rs 30,000 crore. With Raghunathpur phase 1 (1200 MW) we don't have any power purchase agreements, rail linkage and then there is the problem of land acquisition."

"From our side we have firmed up plans to hive off the project to NTPC, subject to approval of the Bengal and Jharkhand government. Our view is to take a hit (from the sale) rather than be dragged down further by the project," said Langstieh.

DVC has invested around Rs 8000 crore in Raghunathpur with a debt equity ratio of 72:28.

As a part of the deal NTPC is likely to take care of the debt component and DVC will save around Rs 80 crore per month as interest expenses. But DVC will have to complete land acquisition. "We are in dialogue with NTPC and tomorrow another team is coming for due diligence," Langstieh said

DVC's outstanding dues from various power distribution companies at present is over Rs 6000 crore. Langstieh said that DVC at present is only able to sell around 3000 MW of power of against its total installed capacity of 6357 MW, depending on demand.

"What we have been able to do is to actively re-engage with our customers. In the end DVC has to sell the power it generates," Langstieh said. He added that the power utility has resumed supply of 903 MW of power to Delhi and Madhya Pradesh and is also supplying power on a short term basis to Assam, Uttar Pradesh, Punjab among others.

"For Jharkhand under the new government regime, payments have been regular (from January)," Langstieh said.

"We are also looking to supply 450-500 MW to Kerala and Karnataka from December and is also exploring how to supply around 1000 MW to Railways," he said.