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As on : 13-Jun-2025

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13-Jun-2025 14:35

Coal India sets up CIL Rajasthan Akshay Urja subsidiary for renewable energy

The subsidiary is established in a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL), the state-owned power company of Rajasthan.

Coal India holds a 74% stake in the joint venture, with RRVUNL holding the remaining 26%. The subsidiary, incorporated on 12 June 2025, aims to develop, construct, and operate solar, wind, and pump storage projects in the state. It will primarily sell the generated power to RRVUNL.

In its filing, Coal India confirmed that it had received the Certificate of Incorporation from the Ministry of Corporate Affairs for the new entity. The subsidiary's authorized share capital is Rs 10 crore, with a total of 1 lakh equity shares issued at Rs 10 per share. Coal India has been allotted 74,000 equity shares, while RRVUNL has received 26,000 shares.

The joint venture will focus on renewable energy projects and is expected to manage the sale of power generated from these projects to RRVUNL. Should both parties agree, the subsidiary may also explore selling power to other entities similar to RRVUNL.

Coal India, a Ministry of Coal enterprise, had received approval from the Department of Investment and Public Asset Management (DIPAM) on 15 January 2025 to form the joint venture with RRVUNL.

Coal India is a coal mining company engaged in the production and sale of coal. As of 31 March 2025, the Government of India held a 63.13% stake in the company.

The company's consolidated net profit jumped 12.04% to Rs 9,604.02 crore during the quarter as compared with Rs 8,572.14 crore posted in corresponding quarter last year. Revenue from operations fell 0.31% YoY to Rs 34,156.35 crore in Q4 FY25.

Shares of Coal India shed 0.66% to Rs 390 on the BSE.

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