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NLC & Coal India sign pact to form JV to harness renewable sources of energy

NLC India Limited and Coal India Limited have signed a pact to form a Joint Venture (JV) for the creation of power assets to harness renewable sources of energy

NLC & CIL sign pact to form JV for renewable sources of energy

New Delhi: The coal PSUs, Coal India Limited (CIL) and NLC India Limited have signed a memorandum of understanding (MoU) to jointly establish a joint venture company (JVC) to develop 5,000 MW of solar and thermal power assets across the country. The MoU has been signed by Coal India’s Director (Technical) Binay Dayal and NLC India’s Director (P&P) NNM Rao on Friday. The MoU signing ceremony was held via video-conferencing and the JV was signed at their respective offices. On the occasion, Coal India Limited’s Chairman Pramod Agrawal, Director (P&IR) RP Srivastava, Director (Finance) Sanjiv Soni, Director (Marketing) SN Tiwari and senior officials of NLC India Limited were also present.

This JV aims to utilise the core capabilities and infrastructure of CIL and NLCIL for the creation of power assets to harness renewable sources of energy. The JV company will ensure sustainable growth and contribute to achieving the ambitious solar power program of both companies.

Under the MoU, Coal India Limited can meet its own requirement of renewable power at a comparatively cheaper price than the existing arrangement. Coal India has already installed solar projects with a 4.83 MW capacity and these plants are generating around 4.6 million units of renewable energy annually. This will help reduce 3,220 tonnes of CO2 emission annually. Both the companies have prepared a roadmap to establish 3 GW of solar projects by the financial year 2024 through the joint venture company. The equity participation in the proposed JV between Coal India Ltd (CIL) and NLC India will be in the ratio of 50:50.

In October 2018, Coal India and NLC India Limited have already signed an MoU for setting up a 50:50 joint venture company (JVC) of 5,000 MW power generation capacity.

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