Coal India, NLC India Joins Forces for Installation of Solar Power worth 3,000 MW

Coal India Ltd (CIL) and NLC India has announced that it will mutually develop solar power assets of 3,000 MW with a prospective investment of around Rs 12,000 crore, sources said.

The two state-run companies had said they would form a JV to develop 5,000 MW of solar and thermal power assets across the country.

"A solar JV is already in process of formation with an initial capital of Rs 10 lakh. Once the company is formed, the respective company boards will decide the final contours of the project. At present, solar capex for each MW is around Rs 4 crore," they said.

The government plans to levy 20 percent basic customs duty on imported solar panels to boost the domestic industry, the sources said. Solar developers have been mainly dependent on Chinese equipment.

The thermal power project will be taken up by a separate JV after due diligence, they said.

CIL has already installed solar projects of 4.83-MW capacity and these plants are generating around 4.6 million units of renewable energy annually, officials said.

"This JV aims to employ the core capabilities and infrastructure of CIL and NLCIL for the creation of power assets to harness renewable sources of energy.

"The JV company will guarantee sustainable growth and contribute to accomplishing the ambitious solar power programme of both companies," Coal India said in a declaration.