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Coal India Approves Two Renewable Energy Joint Ventures with UPRVUNL and DVC

Coal India Limited (CIL) has approved the formation of two joint venture (JV) companies aimed at expanding its footprint in the renewable energy sector.

JV with UPRVUNL for Solar Projects in Uttar Pradesh
Coal India will form a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) to develop solar energy projects across Uttar Pradesh.

Under the proposed structure, the JV will function as a subsidiary of Coal India, with the state-run miner holding a 51% equity stake and UPRVUNL owning the remaining 49%.

The new entity will focus on the development, construction, operation, and maintenance of renewable energy assets. Its scope will include solar, floating solar, wind, pumped storage projects, and other allied energy activities. The JV will also undertake power sales in compliance with applicable regulatory frameworks.

Coal India’s investment in the JV will be made through equity participation, involving the subscription of 51,000 equity shares priced at Rs10 (approximately $0.11) each.

The formation of the JV is subject to approvals from the Government of Uttar Pradesh, the Department of Investment and Public Asset Management (DIPAM), and the Ministry of Coal. The official name and incorporation date of the company will be disclosed after receiving the necessary clearances.

JV with Damodar Valley Corporation
Separately, the Coal India Board has granted in-principle approval for an equity infusion of Rs31.32 billion (around $342.39 million) into a proposed joint venture with Damodar Valley Corporation (DVC).

The JV will be established with a 50:50 equity participation between Coal India and DVC. The total indicative project cost is estimated at Rs208.86 billion (approximately $2.31 billion), structured under a 70:30 debt–equity ratio.

Coal India’s equity contribution will form part of the 30% equity component, with the remaining 70% of the project cost to be financed through debt.

The proposed JV will undertake power generation projects, including both thermal and renewable energy installations, with or without storage solutions. These projects are intended to meet the rising electricity demand in the DVC valley region and other parts of the country.

Through these joint ventures, Coal India continues to diversify beyond coal mining, strengthening its presence in conventional and clean energy generation.