NLC India Limited (NLCIL) announced on August 29 that its Board of Directors has approved two significant joint ventures to strengthen its presence in the thermal and renewable energy sectors.
The first joint venture will be with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) to establish a lignite-based thermal power station in Rajasthan. This venture will also include the development of associated lignite mines to ensure a consistent fuel supply for the power plant.
In a move to diversify further into renewable energy, NLCIL said it has also received preliminary approval to create a Joint Venture Company (JVC) with RVUNL through its wholly-owned subsidiary, NLC India Renewables Limited. This new JVC will focus on developing renewable energy projects with a combined capacity of up to 2,000 MW.
The projects are subject to approval from the Government of India and other relevant authorities.
Under the terms of the agreements, NLCIL said it will have the right to appoint four directors to the JVC, while RVUNL will appoint two. The shareholding will be divided with NLCIL holding 74 percent and RVUNL 26 percent. The initial paid-up capital of the JVC will be Rs 5,00,000, with shares issued at a face value of Rs 10 each.
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