Damodar Valley Corporation (DVC) has signed an agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) to supply 600 MW of power from its upcoming Raghunathpur Phase II plant in West Bengal, an official said on Thursday.

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The Centre has approved the power purchase agreement (PPA), which aims at addressing the increasing electricity demand in the western state, he said.

"DVC will export power to Gujarat for the first time. We have been exporting to southern and northern states and Bangladesh," DVC Member (Finance) Arup Sarkar told PTI.

According to the agreement, DVC will provide power from its upcoming 1320 MW (660 MW x 2) supercritical units in the second phase of the Raghunathpur project.

Currently, the company has two operating units at the location.

The supply will begin after the project is expected to become commercially operational by 2027-28, the official said.

The agreement was signed at GUVNL's Corporate Office in Vadodara in the presence of its Managing Director Jai Prakash Shivhare, Sarkar and DVC Executive Director (Commercial) Sanjiv Shrivastava.

The deal supports GUVNL's efforts to secure a stable power supply, amid rising future energy needs, and DVC stands firmly behind it, the official said.

By 2030, DVC plans to add 3720 MW of thermal capacity to its existing 6687 MW.

The power utility is also adding solar capacity and currently executing a 750-MW project in two phases in association with an NTPC group company, the official added.