The Damodar Valley Corporation was set up in 1948 and was modeled after the Tennessee Valley Authority (TVA) in USA. The Case describes the origin of the DVC idea, its setup, and its experiences in the first two decades of operations. The Case raises the interesting question of how DVC was caught in political crosscurrents and why it lost many of its original functions, getting reduced to a producer of thermal power. The Case provides a basis for exploring the strategies and issues in public enterprise management in its early years.