NLC India and RVUNL Announce Two Joint Ventures for Power Projects

30 Aug 2024 , 03:53 PM

NLC India Ltd (NLCIL) announced on August 29, 2024, that its board has approved two new joint ventures with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL).

The first joint venture will focus on setting up a lignite-based thermal power station in Rajasthan and developing mines to supply fuel for this power station. The project requires approval from the Government of India and other regulatory bodies.

NLCIL’s second joint venture involves forming a partnership with RVUNL through its subsidiary, NLC India Renewables Ltd. This venture aims to develop renewable energy projects with a total capacity of up to 2,000 MW, also pending regulatory approvals.

In both ventures, NLCIL will hold a 74% stake, while RVUNL will own 26%. The initial paid-up capital for these ventures will be ₹5,00,000, with equity shares valued at ₹10 each.

NLCIL will appoint four directors to the joint venture companies, and RVUNL will appoint two directors.

NLC India Ltd, formerly Neyveli Lignite Corporation India Ltd, is a central public sector enterprise under the Ministry of Coal, Government of India. It produces about 30 million tonnes of lignite annually from mines in Tamil Nadu and Rajasthan, which is used in its thermal power stations with a combined capacity of 3640 MW.

NLCIL also has a joint venture for a 1000 MW coal-fired power station and has diversified into renewable energy with a 1404 MW solar power plant and a 51 MW wind power capacity.

Incorporated in 1956, NLCIL was initially fully owned by the Government of India, with a portion of its shares later sold to the public.