Coal India Ltd (CIL) has signed a memorandum of understanding (MoU) with NLC India Ltd to set up a joint venture for generating 3,000 MW of solar power and 2,000 MW of thermal power.
A filing with the stock exchanges said: “Coal India Ltd (CIL) and NLCIL have signed a memorandum of understanding (MoU) for the formation of a joint venture for solar power generation of 3,000 MW and thermal power projects of 2,000 MW capacity.”
The agreement was signed in CIL Headquarters at Kolkatta by Nathella Naga Maheswar Rao, Director (Planning & Projects), NLCIL and Binay Dayal, Director (Tech.), CIL,in the presence or Rakesh Kumar, Chairman cum Managing Director, NLCIL and Anil Kumar Jha, Chairman, CIL.
The MoU also extends for 2,000 MW 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 crore.
The joint venture 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 Thermal Power Projects. The projects will be financed through debt equity ralio 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
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