Kolkata: Coal India Limited (CIL), the country’s largest coal miner, has announced the incorporation of a new subsidiary, CIL Rajasthan Akshay Urja Limited, to spearhead its Renewable Energy (RE) initiatives in Rajasthan. The development was disclosed through a regulatory filing made to the Bombay Stock Exchange (BSE) on Thursday.
The Ministry of Corporate Affairs issued the certificate of incorporation for the new entity on June 9, 2025, a formal step following the joint venture agreement between CIL and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), signed in September last year. The new subsidiary is tasked with developing solar, wind, and pumped storage projects in the state.
As per the filing, the newly incorporated company will have an authorised share capital of Rs 10 crore, with an initial paid-up capital of Rs 10 lakh. Of this, CIL will hold 74 percent equity (Rs 7.4 lakh), while RVUNL will own the remaining 26 percent (Rs 2.6 lakh). The acquisition is being made through cash consideration.
The move is aligned with CIL’s broader push to diversify its portfolio beyond coal and contribute to India's clean energy transition. Although renewable energy is outside the company’s traditional core business, CIL has been gradually stepping up its presence in the sector.
The joint venture will focus on developing solar power, wind energy, and pumped storage projects. These installations will be constructed and operated by the new subsidiary, which will sell the generated power primarily to RVUNL under Section 62 of the Electricity Act, 2003. The entity will also explore opportunities to supply power to state DISCOMs, third-party buyers, and the commercial & industrial (C&I) market across India, subject to mutual consent and applicable laws.
The formation of the joint venture was approved by the Ministry of Coal, which conveyed the consent of the Department of Investment and Public Asset Management (DIPAM) through a letter dated January 15, 2025. No further regulatory approvals are required for the acquisition.
The incorporation of CIL Rajasthan Akshay Urja Limited marks a key milestone in Coal India’s renewable energy roadmap, signalling a continued shift from its coal-dominated operations toward a more diversified and sustainable energy future.
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