NLC India and RVUNL Join Forces for Energy Expansion

NLC India Limited (NLCIL) has received approval from its Board of Directors to establish two strategic joint ventures (JVs) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), marking a significant expansion in both the thermal and renewable energy sectors. These collaborations are set to enhance NLCIL’s footprint in India’s energy landscape.

The first JV will focus on developing a lignite-based thermal power station in Rajasthan. This venture will include the establishment of associated lignite mines, ensuring a steady fuel supply for the power plant. This partnership aligns with the country’s ongoing efforts to bolster energy production through domestic resources, particularly lignite, which is abundant in Rajasthan.

In addition to the thermal power project, NLCIL has also received preliminary approval to form a joint venture company (JVC) with RVUNL through its wholly-owned subsidiary, NLC India Renewables. This new entity will be dedicated to developing renewable energy projects with a combined capacity of up to 2,000 MW, reflecting NLCIL’s commitment to diversifying its energy portfolio and supporting India’s transition to greener energy sources.

The shareholding structure for these ventures will see NLCIL holding a majority stake of 74 percent, while RVUNL will own the remaining 26 percent. The initial paid-up capital for the renewable energy JVC is set at Rs 5,00,000, with further capital infusions planned as the projects progress.

These joint ventures are pending final approvals from the Central Government and other relevant authorities. Once operational, they are expected to contribute significantly to both states' and the nation's energy security and sustainability goals.

Through these collaborations, NLCIL and RVUNL are poised to strengthen their positions in India’s energy sector, leveraging each other's strengths to create a more robust and diversified energy infrastructure.

News by Rahul Yelligetti