Coal India, Rajasthan Rajya Vidyut ink JV for thermal and renewable energy projects

Coal India Ltd (CIL) has entered into a joint venture agreement (JVA) with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) to establish a 2x800 MW brownfield thermal power project at RRVUNL's existing Kalisindh Thermal Power Station in Rajasthan.

The agreement also allows for the exploration of other thermal power-related projects, including renewable generation obligations. Under the JVA, CIL will hold a 74% stake, with RRVUNL holding the remaining 26%.

"Setting up of 2x800 MW Brownfield Thermal Power Project in RRUVNL's Existing Kalisindh Thermal Power Station and/or undertaking any Other Thermal Power Business related projects including Renewable Generation Obligations," according to a stock exchange filing.

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The joint venture company (JVC) will be incorporated as a private limited entity, with an initial paid-up share capital of Rs 10 lakh and an authorized capital of Rs 10 crore, comprising 1 crore equity shares valued at Rs 10 each.

The JVC’s registered office will be located in Jaipur, Rajasthan. Both CIL and RRVUNL will have the right to nominate directors to the board, with CIL appointing four directors and RRVUNL two.

In addition to the thermal power project, the joint venture will also focus on renewable energy initiatives in Rajasthan. The second JVA between CIL and RRVUNL aims to undertake renewable energy projects.

The shareholding structure for this venture will mirror the thermal projects, with CIL holding 74% and RRVUNL 26%.

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