Coal India Limited signs JV agreement with UPRVUNL to set up renewable energy projects in Uttar Pradesh
Coal India Limited (CIL) has entered into a joint venture (JV) agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). The agreement, signed on July 3, 2026, mandates the establishment of a joint entity dedicated to renewable energy projects within Uttar Pradesh.
The partnership aims to drive the development of various green energy initiatives across the state. These include Ground Mounted Solar, Floating Solar, Pumped Storage Projects, Wind Projects, and other related renewable energy ventures, encompassing power sale and associated business activities.
Key Details of the Joint Venture
The collaboration is structured under terms designed to ensure strategic control and mutual interest. CIL and UPRVUNL have established a partnership where CIL holds a 51% shareholding stake, with UPRVUNL holding the remaining 49%.Details regarding the formation and operational structure of the JV include:
| Aspect | Details |
|---|---|
| Parties Involved | Coal India Limited (CIL) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) |
| Purpose | Setting up Renewable Energy Projects in Uttar Pradesh (Solar, Wind, Pumped Storage) |
| Ownership Split | CIL: 51% ; UPRVUNL: 49% |
| JV Structure | The venture will be incorporated as a Private Limited Company. |
| Capital Structure | Initial paid-up capital is INR 10 lakh, and the Authorized share capital stands at INR 10 crore. |
| Board Composition | The Board of Directors will consist of 5 members (3 from CIL and 2 from UPRVUNL). CIL will nominate the Chairperson. |
Strategic Terms and Governance
The agreement outlines several significant terms governing the operational integrity and financial structure of the new entity. To maintain stability in the partnership, the JV structure incorporates provisions for pre-emptive rights and restrictions on share transfer.Among the special rights stipulated in the agreement are pre-emptive rights granted to ensure that either party can maintain its equity holding should a further share issuance occur. Additionally, there is a lock-in period of five years concerning share transfers, subject to the terms of the Joint Venture Agreement (JVA).
Neither CIL nor UPRVUNL are affiliated with any promoter or promoter group companies; they function as Central and State Public Sector Enterprises respectively. The transaction has been confirmed not to be a related party transaction.
COALINDIA Stock Price Movement
On Friday, Coal India Limited saw its stock gain slightly as it settled at ₹438.7, finishing with a 0.06% increase. The equity traded within a range spanning from a low of ₹437.8 to a high of ₹445.45 on the day, with 4.28 million shares traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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