Mumbai: State-owned Coal India Limited (CIL) has received a Letter of Award (LoA) for setting up a 600 MW solar power project at Jalaun Solar Park in Uttar Pradesh. The project has been awarded by Bundelkhand Saur Urja Limited, marking another important step in Coal India’s expansion into renewable energy.
The project will have a total capacity of 600 MW, divided into two units of 300 MW each. It has an estimated project cost of Rs 2,831.11 crore.
Power tariff fixed at Rs 2.73 per unit
According to the Letter of Award, electricity generated from the project will be supplied at a tariff of Rs 2.73 per kilowatt-hour (kWh).
Before the project begins, Coal India has to submit the required documents mentioned in the Letter of Award. The company will also have to sign the Power Purchase Agreement (PPA), Implementation Support Agreement (ISA) and Land Rights and Usage Agreement (LRUA). It must also pay the upfront solar park development charges before signing the ISA.
Project to be completed in 18 months
Coal India said the project is expected to be completed within 18 months from the signing of the Power Purchase Agreement (PPA).
The company will develop the solar plant at Jalaun Solar Park, helping increase renewable power generation and supporting India’s clean energy goals.
Part of clean energy expansion
Coal India has been increasing its focus on renewable energy in recent years while continuing its core coal mining business.
The new solar project is expected to strengthen the company’s presence in the renewable energy sector. Large-scale solar projects like this can help improve clean power generation and reduce dependence on conventional energy sources over the long term.
No related party involvement
The company clarified that the order has been awarded by a domestic entity and is not a related party transaction. It also confirmed that neither the promoter nor the promoter group has any interest in the entity awarding the project.
Coal India informed the stock exchanges that the project details have been disclosed under SEBI’s Listing Regulations as part of its regulatory compliance.
