New Delhi: In a defining move towards its sustainable energy journey, the Board of Indraprastha Gas Ltd (IGL) has approved the establishment of a solar power plant in Rajasthan.
This strategic initiative aligns seamlessly with IGL’s mission to diversify its portfolio and spearhead the transition to clean energy towards achievement of its net zero targets. The company has formally identified renewable energy as a pivotal business segment in its recently rolled out diversification strategy.
A 500 MW greenfield solar power plant is proposed to be set up in partnership with the Rajasthan state-run Rajasthan Vidyut Utpadan Nigam Limited (RVUNL) in Bikaner district.
This project will be executed through a joint venture (JV) company, wherein IGL will hold 74 per cent equity stake, while RVUNL will retain a 26 per cent stake. RVUNL will provide the JV with land in its upcoming solar park and facilitate seamless power evacuation, ensuring an efficient and streamlined execution of the project further amplifying the company’s contribution to India’s clean energy landscape.
With an estimated capital outlay of Rs 2,066 crore, the project will be financed through a mix of debt and equity and is slated for completion within 18 months from the formalization of the JV.
Post approval of RVNUL Board, the proposal for entering into JV agreement is already under approval of Rajasthan state cabinet, the meeting of which is expected to take place soon. Once approved, the JV formation and project implementation activities will start.
This bold foray into renewable energy underscores IGL’s resolute vision of building a formidable 1 GW renewable energy portfolio within the next 2 to 4 years. By leveraging strategic partnerships and investing in sustainable technologies, IGL is poised to redefine the energy paradigm in India, bolstering the nation’s commitment to a greener and more resilient future.
As India’s foremost city gas distribution company, IGL currently handles approximately 10 MMSCMD (Million Metric Standard Cubic Meters Per Day) of gas. With an unwavering commitment to augment its market presence, IGL continues to invest in robust infrastructure and dynamic marketing strategies to fortify its leadership position.
