Coal India, NLC India JV to pump in Rs 12,000 cr to install solar power assets of 3,000 MW

Coal India Ltd (CIL) and NLC India will jointly develop solar power assets of 3,000 MW with a likely investment of around Rs 12,000 crore, sources said on Saturday.

The two state-run companies had on Friday 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 impose 20 per cent basic customs duty duty on imported solar panels to boost the domestic industry, the sources said. Solar developers have been largely 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 utilise 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 ensure sustainable growth and contribute to achieving the ambitious solar power programme of both companies," Coal India said in a statement.

(Photo credit for representation: PTI)