GAIL and RVUNL Power Up with 1,000 MW Renewables

GAIL (India) Ltd. and Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RVUNL) have signed a joint venture (JV) agreement to facilitate the transfer of two existing gas-based power plants and develop approximately 1,000 MW of renewable energy capacity in Rajasthan.

Signed on July 29, the agreement covers the transfer of RVUNL’s 330 MW Dholpur and 270.5 MW Ramgarh gas power plants to the proposed JV, subject to GAIL’s due diligence. In addition, the JV will establish 750 MW of solar and 250 MW of wind capacity, creating a hybrid generation model that combines renewable energy with gas-based power to deliver cleaner, more reliable electricity and support grid stability.

Both GAIL and RVUNL will hold equal (50:50) equity in the JV, which will begin with an authorised and paid-up capital of ₹10 lakh. The JV’s board will comprise six directors—three nominated by each partner. A five-year lock-in period will apply, with both parties holding the right of first refusal on any equity transfer.

Following successful due diligence, RVUNL will incorporate a wholly owned subsidiary, which will subsequently be converted into the JV entity upon GAIL’s capital infusion.

This strategic collaboration aligns with India’s energy transition goals and underscores a commitment to flexible, low-emission power generation.

News by Rahul Yelligetti.