GAIL India enters into JV with RVUNL to execute several power projects

New Delhi: GAIL (India) Limited shares are in focus as the company along with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) will enter into a Joint Venture Agreement with 50-50 percent ratio of shareholding.

The Purpose of entering into the agreement is to transfer the existing 330 MW gas-based power plant in Dholpur, Rajasthan and 270.5 MW gas-based power plant in Ramgarh, Rajasthan to the Joint Venture Company (JVC) upon satisfactory outcome of the due diligence exercise by GAIL.

The company will also set up around 750 MW solar projects and around 250 MW wind power projects in Rajasthan through the JVC for complementing & bundling with the power produced from the Existing gas-based Power Plants.

Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel

Upon satisfactory outcome of due diligence of existing gas-based power plants by GAIL and requisite approvals, RVUNL shall incorporate a 100% subsidiary company which shall become the JVC after investment by GAIL. After the incorporation of the Company, the existing power plant(s) shall be transferred to the Company through an Asset Transfer Agreement.

Upon the completion of asset transfer and fulfilment of the other conditions precedent, GAIL shall invest in the Company either by way of share subscription or share purchase.

The Joint Venture will have initial authorised and paid-up share capital of Rs 10,00,000 divided into equity shares of Rs 10/- each.

Shares of GAIL (India) are trading down by 1.39% at Rs 178.06 on BSE.