Coal India Share Price Dips on June 13; Expands into Renewables with JV in Rajasthan

Coal India Limited (CIL), India’s largest coal producer, has taken a significant step towards clean energy by forming a joint venture (JV) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) to develop renewable energy projects in Rajasthan. The new entity, named CIL Rajasthan Akshay Urja Limited, will focus on solar, wind, and pumped storage projects.

Key Details of the JV

The newly formed company will have an authorised share capital of ₹10 crore and an initial paid-up capital of ₹10 lakh. Out of this, CIL will contribute ₹7.4 lakh by subscribing to 74,000 equity shares, while RRVUNL will contribute ₹2.6 lakh through 26,000 shares. CIL will hold a 74% stake, giving it majority control in the venture, while RRVUNL will retain a 26% share.

Purpose and Scope of the JV

The primary objective of this JV is to develop, construct, and operate renewable energy projects, including solar, wind, and pumped storage power plants across Rajasthan. The company will sell the generated power to RVUNL under Section 62 of the Electricity Act, 2003. Additionally, the entity may supply power to other state DISCOMs, third-party clients, and commercial or industrial consumers on mutually agreed terms.

This venture marks a diversification move for Coal India, whose core business has traditionally been thermal coal production. By venturing into renewables, CIL aims to align with India’s broader energy transition goals and reduce its carbon footprint.

Regulatory Approvals and Consideration

The formation of the JV has received approval from the Ministry of Coal and the Department of Investment and Public Asset Management (DIPAM) as communicated via a letter dated January 15, 2025. The acquisition is funded through cash consideration for the subscription of equity shares.

Coal India Share Price Performance

On June 13, 2025, Coal India share price opened at ₹390.00, down from its previous close of ₹392.70. At 9:51 AM, the share price of Coal India was trading at ₹388.45, down by 1.08% on the NSE.

Also Read: Coal India to Restart 32 Mines to Meet Power Demand!

Conclusion

With the creation of CIL Rajasthan Akshay Urja Limited, Coal India is making a strategic entry into the renewable energy sector. The partnership with RVUNL is expected to facilitate the development of green energy infrastructure in Rajasthan, contributing to India’s sustainable energy goals and diversification of CIL’s portfolio.

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