Coal India and RRVUNL Form Joint Venture for 2×800 MW Thermal Power Project

Coal India Limited (CIL) informed the exchanges that it has entered into a Joint Venture Agreement (JVA) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). The collaboration aims to set up a 2×800 MW Brownfield Thermal Power Project at RRVUNL’s existing Kalisindh Thermal Power Station in Rajasthan, while also exploring other thermal power-related projects, including Renewable Generation Obligations. 

The shareholding arrangement for the Joint Venture Company (JVC) will see Coal India Limited holding a 74% stake, while RRVUNL will have a 26% share. The venture will be established as a Private Limited Company, and the initial paid-up share capital will be set at ₹10 lakh. Furthermore, the authorised share capital of the JVC will be ₹10 crore, divided into 1 crore equity shares with a face value of ₹10 per share.

The registered office of the new company will be located in Jaipur, Rajasthan. Both Coal India Ltd and RRVUNL will have the authority to nominate executives to the JVC’s Board of Directors. Coal India Ltd will nominate four directors, while RRVUNL will nominate two directors. 

This partnership represents a strategic move for both companies, particularly as the power sector continues to transition towards sustainable energy solutions while also maintaining a reliable base load capacity. The establishment of this joint venture aligns with the Indian government’s initiatives to strengthen energy security and meet the growing demand for electricity. The collaboration also provides an opportunity to explore synergies in renewable energy, ensuring compliance with renewable energy obligations in addition to conventional power generation.

By pooling their resources and expertise, Coal India Ltd and RRVUNL aim to expand their capabilities in the power generation sector, contributing to the growth of India’s energy infrastructure.

Earlier, in August 2024, Coal India also signed a JVA with GAIL (India) Ltd to set up coal to Synthetic Natural Gas (SNG) plant at Eastern Coalfield Limited (ECL), Bardhaman, West Bengal.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.