GAIL (India) and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) have entered into a joint venture (JV) agreement to transfer two existing gas-based power plants and to develop approximately 1,000 MW of renewable energy (RE) capacity in Rajasthan.
This agreement has been signed on July 29 wherein RVUNL gas plants—330MW Dholpur and 270.5 MW Ramgarh—are to be transferred to the new JV company pending due diligence of GAIL. The JV will also install 750 MW of solar power and 250 MW of wind power, establishing a hybrid model to combine RE with gas production in one flexible, cleaner mix of power. This will encourage the energy transition ambitions of India, as well as guarantee the stability of the grid with stable capacity.
The JV between GAIL and RVUNL should start with an authorized and paid-up capital of Rs 10 lakh, each having a 50 percent stake in the JV on either side. There will be three directors nominated by each partner to have six directors on the board. Right of first refusal on equity transfers by the two parties is granted, and the time lock-in period is five years. After conducting due diligence, RVUNL will constitute a company owned fully by it, which will subsequently be converted into the JV once GAIL invests.
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