Highlights
- Coal India received a Letter of Award for a 600 MW solar project in Uttar Pradesh.
- The project carries an estimated cost of Rs. 2,831.11 Cr and an 18-month execution timeline.
- The solar power plant will be developed at a tariff of Rs. 2.73 per kWh.
Coal India Limited (NSE:COALINDIA) has received a Letter of Award (LoA) from Bundelkhand Saur Urja Limited for setting up a 600 MW solar power plant at Jalaun Solar Park in Uttar Pradesh. The company disclosed the development to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The project comprises two solar generation units of 300 MW each, taking the total planned capacity to 600 MW. According to the filing, the estimated project cost is Rs. 2,831.11 Cr.
Award Terms and Project Scope
As per the Letter of Award, the solar project will be developed at Jalaun Solar Park in Uttar Pradesh at a tariff of Rs. 2.73 per kWh. Bundelkhand Saur Urja Limited, a domestic entity, has awarded the contract.
Coal India stated that it must submit the required documents in accordance with the Letter of Award before executing the project agreements. Following this, the company will sign the Power Purchase Agreement (PPA), Implementation Support Agreement (ISA), and Land Rights Usage Agreement (LRUA). The filing also states that Coal India is required to pay the upfront Solar Park Development Charges before signing the ISA.
Execution Timeline and Project Cost
The company stated that the project is scheduled to be completed within 18 months from the signing of the Power Purchase Agreement. The exchange filing estimates the total project cost at Rs. 2,831.11 Cr.
The execution schedule will commence after the required contractual agreements are signed and the specified preconditions under the Letter of Award have been fulfilled.
Corporate and Regulatory Details
Coal India confirmed that the order has been awarded by a domestic entity. The company also stated that neither its promoter, promoter group nor group companies have any interest in Bundelkhand Saur Urja Limited.
Additionally, the company clarified that the order does not constitute a related party transaction. The disclosure was signed by B. P. Dubey, Executive Director (Company Secretary) and Compliance Officer of Coal India Limited.
Key Risks
- Project execution depends on timely signing of project agreements.
- Delays in statutory approvals could affect implementation schedules.
- Cost variations during execution may influence overall project expenditure.
- Construction timelines may be affected by site or infrastructure-related challenges.
Summary
Coal India has secured a Letter of Award from Bundelkhand Saur Urja Limited to develop a 600 MW solar power project at Jalaun Solar Park in Uttar Pradesh. The project, valued at an estimated Rs. 2,831.11 Cr, will be executed within 18 months of signing the Power Purchase Agreement. The company must complete specified contractual and administrative requirements before project execution begins.
FAQs
Q: What project has Coal India been awarded?
A: Coal India has received a Letter of Award to develop a 600 MW solar power plant at Jalaun Solar Park in Uttar Pradesh.
Q: What is the estimated value of Coal India's solar project?
A: The exchange filing estimates the total project cost at Rs. 2,831.11 Cr for the 600 MW solar power project.
Q: When is the project expected to be completed?
A: Coal India stated that the project is scheduled for execution within 18 months from signing the Power Purchase Agreement.