Companies

CIL in 25-year pact to sell solar power to GUVNL

Our Bureau Kolkata | Updated on April 23, 2021

The ₹442-crore project will be executedthrough a solar EPC contractor

Coal India Ltd has signed a 25-year power purchase agreement for sale of 100 MW solar power to Gujarat Urja Vikas Nigam Ltd (GUVNL).

In its maiden venture into solar power, CIL had, in March this year, won a 100-MW solar power project in reverse auction conducted by GUVNL.

EPC tender floated

The ₹442-crore project will be executedthrough a solar EPC contractor.

In a back-to-back arrangement, CIL has already issued a tender in advance for finalis the contractor. The project will be executed within one year from the date of placement of the work order.

The country’s largest coal miner is betting big on solar power generation with a view to diversify its portfolio. Plans are afoot to generate close to 3,000 MW of solar power by 2024 at an estimated investment of around ₹13,500 crores through internal accruals, Special Purpose Vehicles (SPV) and bank loans.

Shift to clean energy

To accelerate its entry into development of cleaner renewable energy sources, CIL has added two more fully-owned subsidiaries - CIL Navikarniya Urja Ltd’ and ‘CIL Solar PV Ltd’ to its fold in April this year.

“Solar will replace coal as a key energy provider in future and we are laying the groundwork to remain relevant in the country’s energy sector. We plan to venture into solar power generation in a big way,” the executive said.

Published on April 23, 2021

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