Damodar Valley Corporation proposed to set up (i) 1000 (2×500) MW Koderma Phase-I Thermal Power Project (TPP) and (ii) 1320 (2×660) MW Koderma Phase-II Thermal Power Project at Koderma. The Unit-I and Unit-II of Koderma Phase-I TPP are anticipated to be commissioned during September, 2010 and March, 2011 respectively.

As regards Phase-II of Koderma Thermal Power Project, considering non-availability of water in the Tilaya Reservoir in Jharkhand after allocation of 150 cusecs water for Tilaya UMPP of Jharkhand Integrated Power Limited (JIPL), the Damodar Valley Reservoir Regulation Committee (DVRRC) in its 115th DVRRC (Special) meeting advised DVC to explore alternate source to meet the requirement of the project. However, in order to match the commissioning of the project with the time frame for bulk tendering projects with phased manufacturing programme as approved by Government of India, DVC requested for relocation of the project from Koderma in Jharkhand to Raghunathpur in West Bengal and the same was agreed to by the Ministry of Power and Planning Commission

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