Coal India Forms Renewable Energy Subsidiary in Rajasthan

Jaipur, Jun 13 (KNN) In a strategic push towards green energy, Coal India Limited (CIL) has launched a new subsidiary—CIL Rajasthan Akshay Urja Limited—in partnership with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state power generation company. 

This move marks Coal India’s significant entry into the renewable energy sector in Rajasthan.

The newly formed joint venture will see Coal India holding a 74 per cent stake, while RRVUNL will own 26 per cent. The company was officially incorporated on June 12, as confirmed by the Ministry of Corporate Affairs. 

The authorised share capital of the subsidiary stands at Rs 10 crore, with 1 lakh equity shares issued—74,000 shares to Coal India and 26,000 shares to RRVUNL, each priced at Rs 10.

According to Coal India’s exchange filing, the subsidiary is tasked with developing, constructing, and operating renewable energy projects such as solar power, wind power, and pump storage systems within Rajasthan. 

The entity will also oversee power generation and its sale, primarily to RRVUNL. However, it may also sell power to similar entities if mutually agreed upon by both partners.

The proposal to create this subsidiary was initiated on January 15 when the Ministry of Coal sought approval from the Department of Investment and Public Asset Management.

Despite the strategic importance of the venture, Coal India’s stock declined by 2.5 per cent on Thursday, opening at Rs 400.95 and closing at Rs 392.

This collaboration reflects Coal India’s intent to diversify its portfolio and contribute to India’s renewable energy goals, in alignment with national clean energy targets.

(KNN Bureau)