State-owned Coal India Ltd (CIL) has partnered with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) to enhance renewable energy efforts in Rajasthan. This partnership reflects CIL’s strategic move to embrace greener energy solutions, contributing to India’s sustainability goals. The collaboration includes the construction of a 2×800 MW thermal power plant and a focus on renewable energy projects.
Renewable Energy in Rajasthan
Under this agreement, Coal India Limited holds a 74% stake, and RRVUNL holds 26%. The joint venture will have an initial paid-up share capital of INR 10 lakh, with an authorized share capital of INR 10 crore. The company’s registered office will be located in Jaipur, Rajasthan.
This partnership also prioritizes compliance with Renewable Generation Obligations (RGO), ensuring that conventional power companies adopt clean energy practices.
Expanding Beyond Coal
CIL, primarily known for its coal mining operations, is making a strategic shift towards renewable energy. The partnership aligns with India’s goal of increasing the use of renewables in the energy mix, moving towards cleaner power generation.
By venturing into renewables, CIL is not only diversifying but also contributing to India’s ambitious renewable energy targets while continuing its role in the thermal power sector.
Governance Structure
The joint venture’s governance includes four directors appointed by CIL and two directors by RRVUNL, ensuring balanced oversight and collaborative decision-making. This governance model will drive the company’s strategic decisions as it balances coal-based thermal power with renewable energy projects.
Boosting Rajasthan’s Power Sector The collaboration between CIL and RRVUNL is expected to significantly increase Rajasthan’s power capacity and help the state meet its growing energy demands. It is a key step forward for India’s transition to clean energy, blending thermal power expertise with cutting-edge renewable projects.
