Coal India and RRVUNL Partner to Boost Renewable Energy in Rajasthan The governance structure of the joint venture will see CIL and RRVUNL nominating executives to the board, with CIL having the right to appoint four directors and RRVUNL appointing two.
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State-owned Coal India Ltd (CIL) has entered into a significant joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) to expand into the renewable energy sector in Rajasthan. This collaboration marks a strategic shift for the coal giant as it embraces greener energy initiatives, reflecting India's push towards sustainable power generation. The joint venture aims to undertake projects that include the establishment of a 2x800 MW brownfield thermal power plant at RRVUNL's existing Kalisindh Thermal Power Station. The venture will also explore other thermal power and renewable energy projects, with a strong focus on meeting Renewable Generation Obligations (RGO), a key requirement for conventional power companies to adopt cleaner energy sources.
Under the terms of the agreement, CIL will hold a majority stake of 74 per cent, while RRVUNL will hold 26 per cent. The new company will have an initial paid-up share capital of INR 10 lakh and an authorized share capital of INR 10 crore, comprising 1 crore equity shares valued at INR 10 each, as per a regulatory filing. The registered office will be located in Jaipur, Rajasthan.
The joint venture represents a crucial diversification for CIL, which is predominantly known for its coal mining operations. By venturing into renewable energy, the company is positioning itself to contribute to India's ambitious renewable energy targets while maintaining its role in the thermal power sector. The move aligns with the government's vision of increasing the share of renewables in India's energy mix and reducing the country's dependence on coal-fired power plants.
The governance structure of the joint venture will see CIL and RRVUNL nominating executives to the board, with CIL having the right to appoint four directors and RRVUNL appointing two. This leadership structure ensures strong oversight and collaborative decision-making. This joint venture is not only a boost for Rajasthan's energy sector but also a step forward in India's transition towards clean energy.
By blending coal-based thermal power expertise with renewable energy projects, the collaboration aims to contribute significantly to the state's power capacity while advancing national sustainability goals.
