Indraprastha Gas (IGL) has entered a joint venture agreement (JVA) with Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) for setting up a 500 MW solar project in the state.

In its annual report 2024-25, Indraprastha Gas said that it had entered into a memorandum of understanding with RVUNL to develop the solar project at a cost of ₹3.28 billion (~$37.22 million).

Under the agreement, IGL will hold a 74% majority stake in the joint venture (JV) company, while RVUNL will hold the remaining 26%. The shareholding arrangement grants IGL control over board decisions, allowing it to nominate four directors out of a total of six.

The JV’s initial paid-up capital is ₹500,000 (~$5,813.95), divided into 50,000 equity shares of ₹10 (~$0.12) each.

In its regulatory filing, Indraprastha Gas clarified that the transaction does not fall under the related party transaction category. It also stated that disclosures regarding amendments or termination of the agreement, including details of the parties, nature, execution date, reasons for termination, and impact, would be made as applicable.

The company is also in the process of setting up an agro-solar project with a capacity of ~20 MW under group net metering with two distribution companies to meet its captive power requirements in Delhi.

Recently, RVUNL issued requests for proposals (RfP) to prepare feasibility-cum-detailed project reports for developing solar parks with a cumulative capacity of 31.6 GW across six locations in Rajasthan. The solar projects are in the Jaisalmer and Bikaner districts with capacities ranging from 21,00 MW to 12,500 MW.

In August this year, RVUNL and GAIL (India) entered a joint venture agreement to develop large-scale renewable energy projects and the transfer of existing gas-based power assets in Rajasthan. The JV company will target developing approximately 750 MW of solar and 250 MW of wind capacity. The renewable energy projects are expected to be bundled with the existing gas-based power output to ensure efficient and complementary power generation.

In the same month, RVUNL issued an RFP to set up 500 MW/2,000 MWh standalone battery energy storage systems under the build-own-operate model within the state. The project will receive viability gap funding.