NLC India Limited (NLCIL), Neyveli and Coal India Limited (CIL), Kolkatta have inked a Memorandum of Understanding (MoU), today (08-10-2018) in CIL Headquarters at Kolkatta for formation of Joint Venture Company for setting up Solar Power Projects of 3000 MW and Thermal Power Projects of 2000 MW.
Shri Nathella Naga Maheswar Rao, Director (Planning & Projects), NLCIL and Shri Binay Dayal, Director (Tech.), CIL signed the MoU on 08.10.2018 at Kolkatta, in the presence of Shri Rakesh Kumar, Chairman cum Managing Director, NLCIL and Shri Anil Kumar Jha, Chairman, CIL. All the functional directors of CIL were present during the occasion. The Directors of NLCIL and senior officials were also part of the event through video conferencing.
CIL is tasked to become a Net Zero energy company by the Union Ministry of Coal, a move which entails the company to generate 3,000 MW of Solar Power. 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 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 Thermal Power Projects. 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.