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CIL sign JV with NLC for power projects

Coal News - Published on Wed, 10 Oct 2018

Image Source: Dailyhunt
Telegraph India reported that CIL has inked a pact with NLC India Limited to generate power from both conventional and renewable sources. The public sector miner in a statement to stock exchanges said a memorandum of understanding has been signed with NLC India here on Monday to form a joint venture company for 3000MW of solar power and 2000MW of thermal power projects. The cumulative investment in the projects is estimated at INR 12,000 crore. Coal India sources said there were two reasons for the joint venture. First, the PSU is looking to increase its own consumption of renewable power and second, it is exploring the possibility of power plants at pitheads where costs will be low.

Sources said that the joint venture would have equal equity participation and has set a deadline of 15 months to complete the solar power project and four years for the thermal power project. The projects would be financed through a debt equity ratio of 70:30, according to Central Electricity Regulatory Commission norms.

The companies are working on a concept paper that will be submitted to their boards for a clearance.

However, the solar power projects will be set up in identified barren and reclaimed free land of Coal India and also across the country where land is available. The cumulative land required is estimated at around 15,000 acres. The memorandum also extends to thermal power generation across CIL’s subsidiaries.

A CIL official said that “This is a synergistic step, combining the resources of both the companies for a common goal. Coal India will be riding the core technical expertise of NLC in thermal power generation and solar PV power.”

Source :

Posted By : Rabi Wangkhem on Wed, 10 Oct 2018
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