On July 4, sources reported, “Coal India Ltd. (CIL) and NLC India will jointly develop solar power assets of 3,000 MW with a likely investment of about ₹12,000 crores”. Previously, both the PSU companies have announced on July 3, that they would form a Joint Venture in order to develop 5,000 MW of solar and thermal power assets across the country.
According to sources, “A solar JV is already in process of formation with an initial capital of ₹10 lakh”. And added, “Once the company is formed, the respective company boards will decide the final contours of the project. At present, solar CAPEX for each MW is around ₹4 crore. The government plans to impose 20% basic customs duty on imported solar panels to boost the domestic industry”. Import restrictions have been imposed to prevent large dependency of solar developers on Chinese solar infrastructure equipment. Sources said, “Thermal power project will be taken up by a separate Joint Venture after due diligence”.
According to concerned officials, “CIL has already installed solar projects of 4.83-MW capacity and these plants are generating about 4.6 million units of renewable energy annually”.
Coal India in its statement said, “This JV aims to utilise the core capabilities and infrastructure of CIL and NLCIL for the creation of power assets to harness renewable sources of energy. The JV company will ensure sustainable growth and contribute to achieving the ambitious solar power programme of both (companies)”.