Damodar Valley Corporation (DVC) has been approached by banks for taking over some independent power projects (IPPs), according to DVC chairman R N Sen .

Addressing reporters here on Friday, Mr. Sen said: 'We have been approached by banks for taking over some IPPs… we may be in an acquisition mode… but it is still very early.' The feeler from banks came only a week ago, it is learnt.

He said that DVC was now busy trying to evolve a model for the proposed takeover.

'It is likely that a special purpose vehicle will be formed to hold this company in which the lenders would have an equity stake along with power companies such as DVC who would be the operator-cum-part-owners,' he said.

DVC is run by the Union Power Ministry, and is co-owned by the state governments of West Bengal and Jharkhand along with the Union government. Mr. Sen, however, declined to answer a query as to whether the project is located in either of the states.