Rajasthan Cabinet approves formation of four joint ventures in power sector

Deputy Prime Minister Premchand Bairwa, Minister for Industries and Commerce Rajyavardhan Singh Rathore and Minister for Parliamentary Affairs Jogaram Patel were informed about the decisions | Source: X

3 minutes of reading Last updated: August 3, 2024 | 23:20 IST

The Rajasthan government on Saturday approved a proposal to set up four joint venture companies in the power sector. They will work on projects related to generation and transmission of renewable and thermal energy.

The state cabinet led by Chief Minister Bhajanlal Sharma also approved implementation of metro projects in the state.

According to an official statement, in addition to establishing joint ventures to implement renewable energy, thermal energy and power transmission projects, the cabinet also approved the establishment of an infrastructure investment fund.

Deputy Prime Minister Premchand Bairwa, Minister for Industries and Commerce Rajyavardhan Singh Rathore and Minister for Parliamentary Affairs Jogaram Patel announced the decisions, a statement said.

Bairwa said that as per the Metro Rail Policy 2017, the proposal to form a joint venture between the central government and the state has been approved. This joint venture will be engaged in the development, operation and implementation of the existing and future metro projects in Rajasthan.

The joint venture will be able to obtain financial assistance (in the form of share capital and loans) for the costs of the metro project from the Center. In addition, metro projects will be able to receive technical and administrative support.

Minister for Parliamentary Affairs Patel said the government was making continuous efforts to make the state self-reliant in the field of energy.

In line with the Memorandum of Understanding (MoU) signed on March 10, 2024, between the state government and various public sector undertakings, proposals for setting up joint ventures with public sector undertakings were approved in the Cabinet meeting today, Patel said.

The share of government companies in these joint ventures will be 26 percent, and the share of central government enterprises will be 74 percent.

Industries and Commerce Minister Rathore said two separate joint ventures will be set up between Coal India Limited and RVUNL. One will be a thermal project and the other a renewable energy project.

The minister said a joint venture between NTPC Green Energy and RVUNL will be formed to set up renewable energy projects, including solar/wind/hybrid power with a capacity of 25,000 MW, which will see an investment of Rs 1 lakh crore in the state.

Patel said that in the vote on the bill for the year 2024-25, the state government announced the formation of an Infrastructure Investment Trust (InvIT) in the transmission corporation as per the guidelines issued by the Union Ministry of Power. Under this, Rajasthan Vidyut Prasaran Nigam Limited will form an ‘InvIT’ and will be registered with SEBI.

The Cabinet also approved a proposal to authorize RVPN to monetize its transmission assets through an “InvIT.”

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First published: August 3, 2024 | 23:19 IST