Coal India clears renewable JV; board approves multiple investments

Coal India Limited (CIL) has approved the formation of a renewable energy joint venture in Uttar Pradesh, alongside a series of other corporate actions, including a large equity infusion into a gasification subsidiary and the creation of an overseas holding company.

As part of its renewable push, CIL will set up a 51:49 joint venture with U.P. Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). The proposed JV, which will be a subsidiary of CIL, will undertake the development, construction, operation, and maintenance of renewable energy projects in Uttar Pradesh. These include solar, floating solar, pumped storage projects, wind, and allied projects. The initial capital will comprise 51,000 equity shares of Rs 10 each, giving CIL a 51% stake. The proposal is subject to requisite government approvals.

The board also approved an equity infusion of Rs 3,189.54 crore into Bharat Coal Gasification and Chemicals Limited (BCGCL), a subsidiary in which CIL holds 51%, with the remaining 49% held by Bharat Heavy Electricals Limited (BHEL). The investment will fund a coal to ammonium nitrate project with a planned capacity of 0.66 million metric tonnes per annum. The project has an implementation period of 48 months and is intended to meet CIL’s internal demand for explosives while reducing import dependence.

Separately, the board approved the incorporation of an Intermediate Holding Company in Chile. The regulatory filing did not disclose further details on the objective or scale of this overseas structure.

In another regulatory filing, CIL said it will form a 50:50 joint venture with Damodar Valley Corporation (DVC) for power generation projects, covering thermal and renewable energy, with or without storage. The proposed JV will have an initial capital of 50,000 equity shares of Rs 10 each. The broader financing plan envisages equity contribution of Rs 3,132.96 crore, representing 30%, with the balance to be funded through debt.