The Damodar Valley Corporation, popularly known as DVC, is the first multipurpose river valley project of independent India. The corporation came into being on July 7, 1948 by an Act of the Constituent Assembly of India (Act No. XIV of 1948). It is modelled on the Tennessee Valley Authority of the USA. Jawaharlal Nehru, prime minister of India, Dr. B.C.Roy, chief minister of West Bengal and Sri Krishna Sinha, chief minister of Bihar, took personal interest to ensure early success of the project.

The initial focus of the DVC were flood control, irrigation, generation, transmission and distribution of electricity, eco-conservation and afforestation, as well as job creation for the socio-economic well being of the people residing in and around areas affected by DVC projects. However, over the past few decades, power generation has gained priority. Other objectives of the DVC, however, remain part of its primary responsibility. The dams in the valley have a capacity to moderate peak floods of 650,000 to 250,000 ft³/s. DVC has created irrigation potential of 3640 square kilometres.

The first dam was built across the Barakar River, a tributary of the Damodar River at Tilaiya in 1953. The second one was built across the Konar river, another tributary of the Damodar River at Konar in 1955. Two dams across the rivers Barakar and Damodar were built at Maithon in 1957 and Panchet in 1959. Both the dams are some 8 km upstream of the confluence point of the rivers. These four major dams are controlled by DVC. Durgapur barrage was constructed downstream of the four dams in 1955, across the Damodar river at Durgapur in 1955, with head regulators for canals on either side for feeding an extensive system of canals and distributaries. In 1978, the Government of Bihar (that was before the formation of the state of Jharkhand) constructed the Tenughat dam across the Damodar river outside the control of DVC. DVC proposes to construct a dam across the Barakar river at Belpahari in Jharkhand state. There are hydro-electric power stations at Tilayia, Maithon and Panchet, with total installed capacity of 144 MW. The one at Maithon was India's first underground hydro-electric power station.

DVC operates thermal power stations at Bokaro, Chandrapura, Durgapur and Mejia, with total derated capacity of 2745 MW. The power station at Bokaro was biggest in the country when it was built in the fifties. DVC is expanding its thermal power capacity and with the completion of its present plans by 2012 it would be generating more than 5000 MW of power.

The total valley area covered by DVC activities is approximately 24,235 square kilometres The upper valley consists of the districts of Hazaribagh, Koderma, Giridih, Chatra, Dhanbad and Bokaro, and some sections of Palamau, Ranchi, Lohardaga and Dumka districts in the state of Jharkhand. The lower valley consists of the two districts of Bardhaman and Hughli, and some areas of the Howrah, Bankura, and Purulia districts in the state of West Bengal.

The Corporation has its Head Office at Kolkata (previously Calcutta), has a full time Chairman and two part-time members, generally the Secretary of the Power Dept., of the states of West Bengal and Bihar representing their respective states.