Coal India has formed a subsidiary to manage its renewable energy business in Rajasthan. The new subsidiary, named CIL Rajasthan Akshay Urja Limited, is formed in a partnership with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state power company of the Government of Rajasthan.
Coal India arm forms JV with Rajasthan Rajya Vidyut Utpadan Nigam
The subsidiary is a joint venture between Coal India and Rajasthan Rajya Vidyut Utpadan Nigam, with Coal India having a 74 percent share and the latter having a 26 percent share.
In a statement, Coal India said that it has received the Certificate of Incorporation from the Ministry of Corporate Affairs for the subsidiary on June 12. Further, the company said that the authorised share capital of the subsidiary is Rs 10 crore.
A total of 1 lakh equity shares have been issued for the two companies and equity shares are priced at Rs 10 each. While Coal India is allotted 74000 equity shares, the RRVUN is given 26000 shares.
Rationale of subsidiary
In an exchange filing, Coal India said that the subsidiary belongs to the Renewable Energy industry and it was created to develop, construct, and operate solar power projects, wind power projects, and pump storage projects in Rajasthan.
Further, Coal India said that the subsidiary will manage the sale of power generation from the projects to Rajasthan Rajya Vidyut Utpadan Nigam. It also added that, if both parties agree, the subsidiary company could sell the power generated from the projects to companies similar to RRVUN.
Coal India, a Ministry of Coal enterprise, said that the ministry first sought permission from the Department of Investment and Public Asset Management on January 15 for forming a joint venture between Coal India and RRVUN.
Coal India share price
Coal India’s stock fell by 2.5 percent on Thursday. The company’s share opened at Rs 400.95 in the morning at closed at Rs 392.