NLC India, RVUNL to form joint ventures for thermal power plant, renewable projects

State-owned NLC India Ltd has approved two joint ventures with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL).

The first joint venture agreement (JVA) aims to establish a lignite-based thermal power station in Rajasthan, alongside developing the necessary mines to meet the fuel requirements for this power station.

This project is subject to approval from the Government of India and other statutory authorities.

According to the exchange filing, the company has approved to enter into Joint Venture Agreement (JVA) between NLC India Ltd (NLCIL) and Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) for setting up of Lignite based Thermal Power Station in the Rajasthan State and to develop the mines to meet the fuel requirement of the Thermal Power Station, subject to approval from Government of India and other Statutory approvals.

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Additionally, NLCIL has given in-principle approval to form a joint venture company with RVUNL through NLC India Renewables Ltd, its wholly-owned subsidiary, to develop renewable power projects with a combined capacity of up to 2,000 MW.

This venture, too, is pending approval from the Gov

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ernment of India and other regulatory bodies.

Under the agreements, NLCIL will have a 74% stake in both ventures, while RVUNL will hold a 26% stake.

The initial paid-up capital for the ventures will be Rs 5,00,000, with equity shares issued at a face value of Rs 10 each. NLCIL will nominate four directors for the joint venture company, while RVUNL will nominate two.

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