GAIL and RVUNL to bundle gas and renewable power in Rajasthan

GAIL India Limited and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) have signed a joint venture agreement to set up large-scale renewable energy projects and integrate them with existing gas-based power capacity in Rajasthan.

The new joint venture company will develop 750 MW of solar and 250 MW of wind power. These will be bundled with output from two existing gas-based power plants to enable complementary generation. The plants include a 330 MW facility in Dholpur and a 270.5 MW plant in Ramgarh. Both assets will be transferred to the JV company.

The entity will initially be incorporated as a wholly owned subsidiary of RVUNL. GAIL will later infuse equity to become an equal partner. The JV will have an authorised and paid-up share capital of Rs 10 lakh at incorporation, and both parties will hold 50 per cent ownership.

The JV board will have six directors, with three nominated by each partner. A five-year lock-in period applies to equity holdings from the date of incorporation. Both GAIL and RVUNL will retain the right of first refusal for any share transfers. Pricing details for the equity infusion have not been disclosed.

The agreement confirms that this is not a related party transaction and that no conflicts of interest exist between the parties.