NLCIL, CIL to Set-up JV for 3GW Solar, 2GW Thermal Power Projects

Also, the newly formed JV to come up on equal equity participation of 50:50 and has a timeline of 15 months for completion of solar power projects and 60 months for thermal power projects respectively.

Embarking its journey towards renewable energy, public sector undertaking NLC India (NLCIL), Neyveli has signed an agreement with Coal India (CIL) to form a Joint Venture (JV) in order to set-up 3GW solar and 2GW thermal power projects.

The company said in a statement that, “NLC India (NLCIL), Neyveli and Coal India (CIL), have inked a Memorandum of Understanding (MoU) at CIL Headquarters at Kolkata on 08-10-2018 for formation of Joint Venture Company for setting up solar power projects of 3000 MW and thermal power projects of 2000 MW.”

The MoU was inked by NLCIL, Director (Planning & Projects), Nathella Naga Maheswar Rao and Binay Dayal, Director (Tech.), CIL in the presence of Rakesh Kumar, CMD, NLCIL and Anil Kumar Jha, CMD, CIL, it added.

Further, the 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.

Moreover, the estimated cost for CIL’s solar power generation is pegged at Rs 12,000 crore.

Also, the newly formed JV to come up on equal equity participation of 50:50 and has a timeline of 15 months for completion of solar power projects and 60 months for thermal power projects respectively.

As per the CERC norms, the projects will be financed through debt equity ratio of 70:30. A concept paper has been initiated by both the companies to get clearance from their respective boards.

According to a CIL official, “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.”