NEW DELHI: In a move to bolster energy security in Assam, NLC India Renewables Limited (NIRL), a wholly-owned subsidiary of NLC India Limited, and Assam Power Distribution Company Limited (APDCL) signed a Joint Venture Agreement on Saturday.
This partnership will see the establishment of a Joint Venture Company (JVC) with the primary objective of developing 1000 MW of renewable energy projects within the state.
According to a press note by NIRL, the JVC will be structured with an equity shareholding of 51% by NIRL and 49% by APDCL.
NIRL will leverage its expertise in renewable energy project development, while APDCL will play a crucial role in facilitating land acquisition, obtaining necessary regulatory approvals, and ensuring the development of essential power evacuation infrastructure.
Power Purchase Agreements (PPAs) will be signed with Assam DISCOMs for the sale of 100% of the generated power, ensuring a 25-year offtake arrangement for the green energy produced by the JVC.
“By leveraging the synergies between NIRL and APDCL, we aim to build robust infrastructure for renewable energy generation and distribution. This initiative will not only ensure energy security for Assam but also catalyze socio-economic development by creating green jobs and enhancing the State’s sustainability index,” said Prasanna Kumar Motupalli, Chairman of NIRL.
The Joint Venture Company is set to play a pivotal role in addressing the energy needs of Assam in an environmentally responsible manner and also to meet the Renewable Purchase Obligation.
It will focus on the deployment of innovative technologies to maximize efficiency and minimize the carbon footprint, thereby paving the way for a greener future.
This JVA represents a significant collaboration to promote green energy and sustainable development in Assam, addressing the State’s energy needs while aligning with India’s renewable energy targets.