In its maiden venture into solar power, the world’s largest coal-producing company Coal India Limited on Friday (23 April) signed its first power purchase agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) for the sale of 100 MW solar power.
Coal India plans to invest nearly Rs 13,500 crore in solar power projects. The company has rolled out a plan for 3,000 MW of solar power generation by 2024.
Solar power generation stands a priority for the company as it looks at diversification. To accelerate its diversification with entry into production of renewable energy, Coal India added two fully owned subsidiaries to function as SPVs, reports The Economic Times.
The two SPVs are CIL Navikarniya Urja Limited and CIL Solar PV Limited. Both of them will be based in West Bengal.
“We feel upbeat that we could win in our first ever competitive bidding of solar auction. We will aggressively participate in more such auctions in the future,” said a senior executive of Coal India.
“Solar will replace coal as a key energy provider in the 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.
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