Power Generation Company Signs Power Purchase Agreement for Its Largest Solar Project- 810 MW at Pugal Solar Park, Rajasthan
The stock is up by 20 per cent from its 52-week low of Rs 193 per share and has given multibagger returns of 400 per cent in 5 years.
In line with the vision of the Hon'ble Prime Minister of India, Shri. Narendra Modi, in establishing 500 GW of Renewable Energy capacity by 2030, NLC India Renewables Limited (NIRL), a 100 per cent 9subsidiary and renewable energy arm of NLC India Limited (NLCIL), a Navratna Central Public Sector Undertaking, today signed the Power Purchase Agreement (PPA) for its upcoming 810 MW Solar Power Project with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) at a formal ceremony held in Jaipur.
The agreement was signed in the esteemed presence of Smt. Arti Dogra, IAS, Chairperson & Managing Director, DISCOMs, Government of Rajasthan, and Secretary (Energy), Government of Rajasthan (Addi. Charge), Shri. Nathmal Didel, IAS, Managing Director, Rajasthan Rajya Vidyut Prasaran Nigam Limited, Shri Prasanna Kumar Motupalli, Chairman and Managing Director, NLCIL and Chairman, NIRL, Shri Deveridra Shringi, Chairman and Managing Director, RVUNL, along with senior officials from RVUNL, NLCIL and NIRL. This flagship project at Pugal Solar Park, Bikaner District, marks a significant milestone in NLCIL's journey towards becoming a major player in the renewable energy space. The project is being developed in the barren lands of Bikaner District and the proposed site is bestowed with abundant Solar radiation. The project was awarded through a competitive tariff-based bidding process by RVUNL.
The project is being implemented under the MNRE's Ultra Mega Renewable Energy Power Park (UMREPP) Scheme - Mode 8. NLCIL was the first CPSU in the country to establish 1 GW of Renewable energy projects in the country and is continuing its pursuits in the field of Renewable energy and the 810 MW Puga I solar project is a testament to these efforts. The project is expected to generate approximately 2 Billion Units (BU) of green electricity annually and offset approximately 1.5 million metric tons of CO2 emissions per year, as per the terms of the PPA, playing a vital role in India's transition to a low-carbon economy. The project will be established within the infrastructure of the 2000 MW Pugal Solar Park being developed by RVUNL.
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With this project, NLCIL's cumulative renewable energy capacity under implementation takes a major leap, reinforcing its mission of powering India responsibly with a balanced energy mix of conventional and renewable sources. This addition also brings NLCIL a step closer to its strategic target of achieving 10 GW of renewable energy capacity by 2030, aligned with India's decarbonization and energy security goals. NLCIL is also contemplating upto 2000 MW renewable energy projects and 3 x 125 MW lignite-based thermal power projects with linked lignite mines in Rajasthan through the Joint Venture mode. NLCIL's association with the State of Rajasthan dates back to the early 2000s and continues to grow, founded on mutual trust and respect.
About NLC India Ltd
NLC India Ltd is a government-owned company in India primarily involved in lignite mining and thermal power generation. It operates mines in Tamil Nadu and Rajasthan, using lignite to produce electricity. This power is then sold to various states in India, including Tamil Nadu, Rajasthan, Andhra Pradesh, Kerala, Karnataka and Puducherry. As a Navratna company, NLC India holds a significant position in the Indian energy sector.
The company has a market cap of over Rs 30,000 crore and has been maintaining a healthy dividend payout of 25.4 per cent. The stock is up by 20 per cent from its 52-week low of Rs 193 per share and has given multibagger returns of 400 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.