CIL backs 875 MW solar project with Rs 3,160 crore guarantee
Author: PPD Team Date: March 26, 2026
Coal India Limited (CIL) has approved a corporate guarantee of up to Rs 3,160 crore for CIL Rajasthan Akshay Urja Limited (CRAUL), supporting debt financing for an 875 MW solar PV project in Rajasthan. The approval was granted at the company’s board meeting on March 23, 2026.
CRAUL is a joint venture between CIL, which holds a 74% stake, and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), which holds the remaining 26%. The guarantee will back borrowings to fund the solar project’s capital expenditure.
Under the structure, CIL will effectively underwrite CRAUL’s debt obligations for the project. In case of any default, CIL’s liability is capped at Rs 3,160 crore. The transaction has been undertaken at arm’s length.
The move reflects CIL’s continued expansion into renewable energy alongside its core coal operations. The 875 MW project adds to its growing solar portfolio and represents a large-scale utility project in Rajasthan, a state with strong solar resource and established project development activity.
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