NLC India Limited and Coal India Limited (CIL) have signed a Memorandum of Understanding (MoU) for formation of a joint venture (JV) company to develop solar power projects of 3 GW capacity. As per the MoU, the JV company will have an equity participation of 50:50. The projects will be financed through debt equity ratio of 70:30 as per the Central Electricity Regulatory Commission (CERC) norms and will be completed in a period of 15 months. The JV will also be responsible for setting up at least 2 GW of thermal power capacity.
The solar power projects will be set up in the identified barren and reclaimed free land (about 15,000 acres) of CIL and also across the country at an estimated cost of Rs 120 billion. Currently, a concept paper has been initiated by both the companies to get clearance from their respective boards.