Jaipur (Rajasthan) [India], April 1 : Indraprastha Gas Limited (IGL) has approved a major renewable energy project to set up a solar power plant in Rajasthan. The company will invest Rs 2,066 crore in this project as part of its strategy to expand into clean energy and achieve its net zero targets.
The company on Monday said that the proposed 500 MWp solar power plant will be established in partnership with Rajasthan Vidyut Utpadan Nigam Limited (RVUNL), a state-run power company.
The project will be developed through a joint venture, where IGL will hold a 74 per cent stake, and RVUNL will own the remaining 26 per cent. RVUNL will provide land for the project at its upcoming solar park in Bikaner and will also assist in power transmission.
The company in a statement said "A 500 MWp greenfield solar power plant is proposed to be set up in partnership with the Rajasthan state-run Rajasthan Vidyut Utpadan Nigam Limited (RVUNL) in Bikaner district. With an estimated capital outlay of Rs 2066 crore, the project will be financed through a mix of debt and equity and is slated for completion within 18 months from the formalization of the JV".
The project is expected to be completed within 18 months after the joint venture is officially formed. The Rajasthan state cabinet is currently reviewing the proposal, and once approved, work on the plant will begin. The funding will come from a mix of debt and equity.
This move is part of IGL's plan to build a 1 GW renewable energy portfolio in the next two to four years. By expanding into clean energy, IGL aims to strengthen India's efforts towards sustainability and reduce dependence on fossil fuels.
Currently, as per the company, IGL supplies about 10 MMSCMD (Million Metric Standard Cubic Meters per Day) of gas across its markets. The company continues to invest in infrastructure and marketing to maintain its leadership in the city gas distribution sector while also embracing renewable energy for a greener future.
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