HYDERABAD: Singareni Collieries Company Limited (SCCL) and Rajasthan power utility signed a memorandum of understanding (MoU) to set up 3,100 MW power plants—1,600 MW thermal and 1,500 MW solar power plants, in Rajasthan on Monday. Both SCCL and Rajasthan power utility will form a joint venture company.
The MoU was signed in the presence of Rajasthan Chief Minister Bhajan Lal Sharma, Telangana Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka, and Rajasthan Energy Minister Heralal Nagar.
The total cost and profits of the joint venture project will be shared between SCCL and Rajasthan Rajya Vidyut Utpadan Nigam Limited in the 74:26 ratio.
This stands as a major expansion of SCCL, which has a 136-year history. “This is a historic pact and helps SCCL to expand its business,” said Bhatti Vikramarka. He stated that Telangana, which has vast coal reserves and is a centre for thermal power, and Rajasthan, which is a centre for solar power, joined hands strategically. He added that this pact is a revolutionary step in the energy sector of the country.
Ministers from both states also stated that this agreement would help India overcome the power crisis.
Bhajan Lal Sharma said that the Rajasthan government signed agreements only with Coal India so far, and for the first time, they have signed an agreement with SCCL. The Rajasthan government is willing to make more agreements with SCCL in the future, he added.
Of its 74 per cent share, Telangana will pay in cash. Rajasthan, for its 26 per cent share, would provide basic amenities like land and other resources for power plants. It would transfer land with the required permissions to SCCL. The Rajasthan Energy department would look after signing power purchase agreements (PPAs).
Rajasthan Energy Additional Chief Secretary Alok, Telangana Energy Principal Secretary Sandeep Kumar Sultania, Transco CMD Bhaskar, Singareni CM N Balaram, and Singareni Director D Satyanarayana Rao were also present.
SCCL has already ventured into thermal and solar power generation by starting thermal power plants in Jaipur, Mancherial. It produces 245.5 MW solar power and targets to produce 450 MW solar power by 2026. SCCL has also decided to establish a 1,600 MW thermal plant near Naini coal block in Odisha. The coal production in Naini will start in the next 30 days.