The estimated capital cost of the project is around Rs3,800 crore and will be funded through a 70:30 debt to equity ratio. Tata Power will contribute approximately Rs840 crores to the with DVC contributing about Rs 300 crore.

Financial closure for the Maithon Project is targeted at around mid 2007. As per current plans, the project will comprise two generating units of which the commissioning of the first unit is scheduled for Late 2009 followed by 2010 for the second.

Speaking on the occasion, Shinde said "I am happy that the much awaited 1000 MW Maithon Right Bank Power Project is being commenced through a pioneering joint venture initiative between Tata Power and DVC."

Power from the Maithon project meant for the power deficit Western and Northern states and also for meeting the requirements of Damodar Valley Corporation (DVC).

Tata power had earlier signed the shareholders agreement with DVC for the 1000 MW project being executed by Maithon Power Ltd, in which Tata Power has a majority 74-per cent equity with the public sector Damodar Valley Corporation holding 26 per cent.

"This joint venture is a public-private partnership towards meeting the power supply needs of the country," says Adi Engineer, director, Tata Power. He adds, "For Tata Power, the venture also marks an initiative towards acquiring a truly national footprint and providing power at economic rates for the end consumer. The agreement marks a successful trend and offers hope for more such joint initiatives for the power sector in the future.

The project has signed a long-term coat supply agreement with the public sector Bharat Coking Coal mines, while the adjacent Maithon reservoir will meet the project''s water reqyuirement..

DVC has already acquired a substantial portion of the total land requirement of 1,200 acres for the project. The project has all the major permits and clearances, including from the Pollution Control Board and MoEF.

The 1000 MW Right Bank Thermal Power Project is the first initiative in public-private power generation partnership. Earlier, Tata Power had pioneered a transmission and distribution partnership for power supply in New Delhi through the North Delhi Power Ltd (NDPL). This makes Tata Power the first company to get in to public-private partnerships in the core sector.