Coal India Limited (CIL) and NLC India Limited (NLCIL), formerly Neyveli Lignite Corporation Limited, coming together in a significant step, have inked a Memorandum of Understanding (MoU) today in CIL headquarters, Kolkata for formation of Joint Venture (JV) Company for Solar Power Generation of 3,000 MW and Thermal Power Projects of 2,000 MW capacity.
Mr. Binay Dayal, Director (Tech) CIL signed the MoU on behalf of CIL while Mr. N N Maheswar Rao, Director, Technical (Projects & Planning) inked the pact on behalf of NLCIL in the presence of Mr. Anil Kumar Jha, Chairman CIL and Mr. Rakesh Kumar Chairman, NLCIL. All the Functional Director of the CIL were present during the occasion. The Directors of NLCIL and other senior officials were also part of the event through Video Conferencing.
CIL is tasked to become a Net Zero energy company by Ministry of Coal, a move which entails the company to generate 3,000 MW of solar power. The MoU, also extends for 2,000MW of thermal power generation across CIL’s subsidiaries. Solar power projects will be set up in the identified barren and reclaimed free land of CIL and also across the country where land is available, requiring around 15,000 acres. The estimated cost for CIL’s solar power generation is pegged at Rs. 12,000 Crores.
The JV company to come up on equal equity participation of 50:50 has a time line of 15 months for completion of solar power projects and 60-month period for TPPs. The projects will be financed through debt equity ratio of 70:30 as per the CERC norms. A concept paper has been initiated by both the companies to get clearance from their respective boards.
“This is a synergistic step, combining the resources of both the companies for a common goal. CIL will be riding the core technical expertise of NLCIL in thermal power generation and Solar PV Power” stated an Official of CIL.