Durgapur, Sept. 17: The government is contemplating merging the loss-hit Durgapur Projects Limited (DPL) with the state-run power development, distribution and transmission utilities.

Senior officials of the West Bengal Power Development Corporation Limited (WBPDCL) are expected to visit DPL tomorrow to meet the plant management and discuss the issue.

The DPL management had requested the state government to consider merging the five-decade-old plant with the state-run power companies as they have better infrastructure.

“We have held several meetings with the WBPDCL, West Bengal State Electricity Distribution Company Ltd and the West Bengal State Transmission Company Ltd to discuss our proposal. We want to do this because DPL is incurring losses,” a DPL official said.

The official said DPL was suffering losses mainly because of old infrastructure. “The first two 30MW units were closed down a decade ago. The third, fourth and fifth units, having a capacity of 77MW each, were shut down last year because of cost overruns,” he said.

“Only two units, the sixth and the seventh, are operational now, but the production is less than the capacity,” the official added.

DPL suffered a loss of Rs 200 crore in the last fiscal and Rs 100 crore in this financial year so far. The company owes around Rs 2,000 crore to the Power Finance Corporation Ltd.

“If DPL is merged with the state-run power utilities, the financial burden of our 4,000-odd employees will be taken over by WBPDCL,” the DPL official said. WBPDCL chairman Narayan Swaroop Nigam said discussions were on with DPL, but refused to elaborate.

Power secretary Gopal Krishna, too, said talks were being held. “Discussions are going on in this matter. We will give the best to DPL to revive the plant,” he said.