CITU condemns handing over New Thermal Plant of DVC to Tata Power

19th November, 2014


CITU condemns handing over new Thermal Plant of Damodar Valley Corporation (DVC) to the private Sector Tata Power.

DVC, a Central Public Sector Undertaking, has set up a Thermal Power Plant in the district of Purulia, West Bengal, viz., Raghunathpur Thermal Power Station. The first unit of this Thermal Power Plant whose capacity is 600 MW has already been commissioned. Construction of the second phase of this project has already started whose capacity will be 1200 MW.

DVC has already spent more than Rs.6,000 crores for the construction of the first phase of the project. 900 acres of land was acquired by the State Government and it was handed over to the DVC for the construction of the Power Plant. The Central Government has now decided to hand over the Raghunathpur Thermal Power Station to the private sector Tata Power. This is nothing, but virtual gift of a newly constructed Public Sector Power Plant to private Sector by frittering away public funds for private interest. When DVC has the capacity and capability to run this unit why it is being handed over to Tata? The land was acquired for DVC’s project and not for the Tata. The decision to hand over the Public Sector Unit to a private sector company is in accordance with the policy of the present government.

CITU deplores such move and demands that the decision taken by the DVC Board at the direction of Government of India must be reversed and the Power Plant must remain in the Public Sector under DVC. CITU also demands that the government must desist from such handing over of public sector units and public funds to private sector for promoting private gains.

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