Coal India Limited executed a joint venture agreement with U.P. Rajya Vidyut Utpadan Nigam Limited on July 3, 2026, establishing renewable energy initiatives across Uttar Pradesh. The venture encompasses ground mounted solar installations, floating solar arrays, pumped storage systems, wind power projects, and complementary renewable energy solutions, coupled with power distribution and related commercial operations.
Coal India Limited holds a 51% equity stake while U.P. Rajya Vidyut Utpadan Nigam Limited maintains 49% ownership, creating a 5-year share transfer lock-in governed by the venture agreement. The joint venture will be formally registered as a Private Limited Company headquartered in Lucknow, Uttar Pradesh, with an initial paid-up capital of Rs 0.10 crore against an authorized share capital of Rs 10 crore.
Corporate governance will feature a 5-member board structure with Coal India Limited appointing three directors and U.P. Rajya Vidyut Utpadan Nigam Limited appointing two directors, with Coal India Limited responsible for designating the Chairperson of the board. Both entities represent Central and State Public Sector Enterprises respectively, operating independently without promoter group relationships.
Carbon-free energy generation capacity will diversify India's renewable energy portfolio, supporting Uttar Pradesh's clean energy transition objectives. The collaboration leverages both companies' technical expertise and financial resources to develop integrated renewable energy solutions that address regional power demands while advancing sustainable development goals. Share allocation will follow the established 51:49 equity distribution post-incorporation.
The partnership establishes a framework for renewable energy project development, with predefined rights for future capital raising to maintain the agreed shareholding proportions. The joint venture structure enables efficient project execution across multiple renewable energy technologies while ensuring governance through shared board representation and established dispute resolution mechanisms.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.