Coal India, Rajasthan Rajya Vidyut Utpadan Nigam To Form JV Firm For Thermal Power Project

Coal India Ltd. and Rajasthan Rajya Vidyut Utpadan Nigam Ltd. signed a joint venture agreement for setting up of 2x800 megawatts brownfield thermal power project on Monday, according to an exchange filing on BSE.

The companies plan to set up the project in RRVUNL's existing Kalisindh Thermal Power Station.

The JV firm will add the aforementioned power project and/or undertake any other thermal power business related projects including renewable generation obligations.

While Coal India will hold a 74% stake in the venture, RRVUNL's share will be 26%. The joint venture firm will be incorporated as a “Private Limited” company.

The initial paid-up share capital of the join venture will be Rs 10 Lakh.

The authorized share capital for the same will be Rs 10 crore, comprising of 10 lakh equity shares worth Rs 10 each.

The registered office of the joint venture company will be in Jaipur in Rajasthan.

Coal India and RRVUNL each shall have the right to nominate four and two executives as directors of the company, respectively.

"Shares shall be issued after incorporation of JVC in the ratio of equity shareholding," the filing said.

Shares of Coal India closed 1.93% higher at Rs 500.75 apiece on the BSE, compared to a 0.45% advance in the BSE Sensex.