The Damodar Valley Corporation (DVC) has entered into a long-term Power Purchase Agreement (PPA) to supply 300 MW of round-the-clock thermal power to Karnataka’s five electricity distribution companies (DISCOMs). This significant inter-state collaboration, formally signed today at the Power Company of Karnataka Limited (PCKL) headquarters, marks a crucial milestone in ensuring a stable and reliable energy supply for the southern state, vital for its continued economic development and urban sustainability.
The 300 MW power supply will be sourced from DVC’s forthcoming Koderma Thermal Power Station Phase-II, which comprises two 800 MW units. This new allocation strategically supplements the existing 450 MW of round-the-clock power that Karnataka’s DISCOMs currently receive from DVC, thereby significantly enhancing the state’s energy portfolio. The five beneficiaries under this agreement are Bangalore Electricity Supply Company (BESCOM), Hubli Electricity Supply Company (HESCOM), Mangalore Electricity Supply Company (MESCOM), Gulbarga Electricity Supply Company (GESCOM), and Chamundeshwari Electricity Supply Corporation (CESC). This diversified sourcing is crucial for meeting the escalating energy demands of Karnataka’s rapidly urbanising centres and industrial hubs.
The formalisation of this agreement, facilitated by the Ministry of Power, Government of India, underscores the growing imperative for robust inter-state cooperation in the national power sector. Shri Arup Sarkar, Member (Finance), DVC, expressed pride in expanding the corporation’s partnership with Karnataka, highlighting DVC’s evolving capability to deliver reliable power beyond its traditional operational regions of West Bengal and Jharkhand. This expanding footprint positions DVC as a key player in India’s broader energy landscape, contributing to national grid stability and supporting regional development.
Shri Lokhande Snehal Sudhakar, IAS, Managing Director, PCKL, emphasised the agreement’s critical significance in ensuring a steady and competitively priced power supply. For a state like Karnataka, which is a hub for technology and industry, consistent and affordable energy is the bedrock of economic growth. Reliable power enables businesses to operate efficiently, supports the expansion of public services, and ensures equitable access to modern amenities for all citizens, including those in remote areas. This stability, even from thermal sources, is a foundational requirement that allows for the concurrent development of cleaner energy alternatives and smart city initiatives.
The agreement coincides with DVC’s active expansion of its generation capacity. Construction is well underway for two major upcoming projects: the Raghunathpur Thermal Power Station (RTPS) Phase-II and the Koderma Thermal Power Station (KTPS) Phase-II. With the signing of this PPA, DVC has successfully completed agreements for all three of its upcoming projects, collectively adding a substantial 3,720 MW of new generation capacity to India’s power grid. This large-scale capacity addition is vital for meeting the nation’s burgeoning energy demands, which are driven by rapid urbanisation, industrial growth, and increasing electrification across all sectors.
While thermal power remains a significant component of India’s energy mix, securing reliable supply is crucial for managing the energy transition. A stable base load provided by entities like DVC allows for greater integration of intermittent renewable energy sources, ensuring grid stability as the country progressively shifts towards a zero net carbon future. This long-term power supply agreement not only enhances Karnataka’s energy security but also exemplifies increasing inter-state cooperation in the power sector, underlining DVC’s pivotal role in supporting India’s energy transition and the growing demands of its dynamic economy. The provision of consistent power is also a fundamental enabler for gender-neutral development, as it supports educational institutions, healthcare facilities, and economic opportunities that benefit all segments of society.
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