IGL lines up Rs 2,066 crore foray into solar energy

NEW DELHI: Indraprastha Gas Ltd, the sole CNG and PNG supplier in Delhi, is diversifying into renewable energy by building a five-megawatt solar power project at Bikaner in Rajasthan at an investment of Rs 2066 crore, the company said on Monday after its board approved the plan.
The project is to be set up through a joint venture with Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL). IGL will hold 74% equity stake, while RVUNL will retain a 26% stake in the JV and provide land in its upcoming solar park as well as facilitate seamless evacuation of power. The project will be financed through a mix of debt and equity and is slated for completion within 18 months from the formalisation of the JV.
Describing the move as a "defining moment", the company said it aligns seamlessly with its mission to diversify its portfolio and widen the transition to clean energy towards its net-zero goal. Renewable energy will be a pivotal business segment in the diversification strategy, the company said.
IGL is the country's largest city gas distribution company, handling about 10 MMSCMD (million metric standard cubic meters per day) of gas. With an unwavering commitment to augment its market presence, IGL continues to invest in robust infrastructure and dynamic marketing strategies to fortify its leadership position, the company said.