Coal India bags 600 MW UP solar deal
State-owned mining giant Coal India Limited announced on Wednesday that it has secured a major green energy contract worth an estimated Rs 2,831.11 crore to
State-owned mining giant Coal India Limited announced on Wednesday that it has secured a major green energy contract worth an estimated Rs 2,831.11 crore to construct a massive 600 MW solar power facility in Uttar Pradesh.According to an official regulatory filing submitted to the stock exchanges, the domestic contract was awarded by Bundelkhand Saur Urja Limited.The solar plant will be established at the Jalaun Solar Park in Uttar Pradesh.Also Read | Adani Green surpasses 20 GW renewable energy capacity, first in India to hit milestoneThe project will be divided into two distinct blocks of 300 MW each, and the generated electricity will be supplied at a fixed rate of Rs 2.73 per kilowatt-hour (kWh).Under the guidelines of the agreement, the Kolkata-based company must first submit the necessary compliance documentation as outlined in the initial Letter of Award. Following this step, the Coal India is required to pay upfront Solar Park Development fees.Once these financial and administrative prerequisites are complete, the company will formally sign the Power Purchase Agreement, the Implementation Support Agreement, and the Land Use Rights Agreement to legally clear the project for construction.Also Read | Govt targets solar, hydrogen components to cut import dependenceOnce the final Power Purchase Agreement is signed, the state-run miner will have a strict timeline of 18 months to fully execute and complete the solar facility.The company also used the regulatory filing to clear up any questions regarding corporate governance.Coal India confirmed in its disclosure that neither its promoters nor any of its promoter group firms hold any stakes, financial interests, or cross-holdings in Bundelkhand Saur Urja Limited.Furthermore, the management clarified that the massive clean energy contract does not qualify as a related-party transaction and is being conducted entirely at arm's length.This project aligns with broader efforts by major Indian public sector undertakings to diversify away from fossil fuels and support the nation's growing renewable energy goals.The Jalaun solar development project forms a core component of the larger Jalaun Ultra Mega Renewable Energy Power Park located at Orai in the Jalaun district of Uttar Pradesh.The overall park is being set up with an estimated investment of Rs 796.96 crore by Bundelkhand Saur Urja Limited, a dedicated joint venture subsidiary of the state-owned hydropower giant NHPC.Prime Minister Narendra Modi initially laid the foundation stone for this massive 1,200 MW clean energy park via virtual mode in 2024.Once fully completed and commissioned, the wider solar park facility is projected to generate roughly 2,400 million units (MUs) of clean electricity every single year to help power the region.
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