Coal India Limited (CIL), traditionally India’s largest coal mining public sector company, is now actively expanding into the renewable energy sector. In a significant strategic shift, the company has approved the formation of joint venture (JV) companies to develop and implement renewable energy projects across the country. This move reflects Coal India’s efforts to diversify its energy portfolio and contribute to India’s transition towards cleaner power.
Joint Venture with UPRVUNL for Renewable Projects
The first of these new ventures will be established in partnership with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). Under the proposed agreement, Coal India will hold a 51 per cent equity stake, while UPRVUNL will hold the remaining 49 per cent. The JV company will focus on the development, construction, operation and maintenance of a wide range of renewable energy assets, including solar plants, floating solar arrays, wind farms and pumped storage projects. It will also be responsible for the sale of power generated through these projects.
This partnership signals a broader plan to leverage state-owned resources and expertise in building large-scale clean energy infrastructure to meet rising demand for sustainable electricity.
Diversification Beyond Coal
Coal India’s move into renewable energy marks a noticeable pivot from its traditional business in coal extraction. The company’s diversification strategy includes not only solar and wind power, but also emerging technologies such as pumped hydro storage — which can help balance intermittent renewable generation — and other allied clean energy activities.
The JV model allows Coal India to collaborate with established power utilities in various states, combining strengths in project execution and local energy market understanding. By doing so, the company plans to accelerate its contribution to India’s renewable energy targets while still maintaining its role in national energy security.
Renewable Energy Ambitions and Future Projects
This strategic shift comes at a time when India is aggressively expanding its renewable energy capacity. The government has set ambitious goals under national renewable energy policies, aiming to significantly increase the share of clean power in the overall energy mix over the coming decade. Coal India’s participation through JVs and direct project development aligns with these national objectives and will help strengthen the renewable energy pipeline.
Beyond the Uttar Pradesh joint venture, the company’s broader renewable strategy is likely to include additional collaborations and project launches in other states. These initiatives are expected to focus on both utility-scale projects and grid-connected renewable systems that support local energy requirements and national clean energy commitments.
Industry Context and Growing Clean Energy Focus
Coal India’s foray into renewables reflects a broader trend among traditional energy companies diversifying into clean power. As renewables become more cost-competitive and policy support strengthens, energy utilities and fossil fuel producers alike are exploring investment opportunities in solar, wind and energy storage. This helps future-proof their businesses and aligns with global efforts to reduce carbon emissions.
By forming joint ventures, Coal India aims to build technical capacity and share risks with experienced partners while expanding its footprint in the renewable energy sector. Such collaborations are crucial as India strives to add substantial renewable capacity and enhance energy security through cleaner sources.
Conclusion: A Strategic Shift to Clean Energy
Coal India’s decision to set up joint ventures for renewable energy projects marks a key step in its transition from a coal-focused company to a broader energy player. With the first joint venture with UPRVUNL now approved, the company is poised to contribute to solar, wind and storage project development at scale. These moves are not only important for Coal India’s business strategy but also significant in the context of India’s larger clean energy ambitions and energy transition goals.
