Coal India Ltd has formalized its entry in the solar power sector by signing its very first power purchase agreement, recently.
CIL, it is reported, has signed a PPA with Gujarat Urja Vikas Nigam Ltd (GUVNL) for supplying 100 mw of solar power, for a period of 25 years.
The coal mining company, newly foraying in the solar power sector, won the PPA under a reverse auction. Power supplies will need to begin within 18 months of signing the PPA.
The company is in the process of appointing an EPC contractor for the project that is estimated to cost Rs.442 crore, it is learnt.
The PSU coal company recently formed two wholly-owned subsidiaries to carry out its solar related business. One subsidiary will look after integrated manufacturing of solar equipment while the other will be the solar power developer. (Read more).
CIL has planned to develop 3,000 mw of solar power generation capacity by 2024 for which it has outlined capital expenditure of Rs.13,500 crore that will be financed through internal accruals and loans.