Rajasthan government signs 5 MOUs worth Rs 1.60 lakh crore to boost energy sector

In a step towards making Rajasthan self-reliant in energy sector, the Rajasthan government signed 5 MOUs worth Rs 1.60 lakh crore to boost energy production, strengthen the energy transmission system in the state and establish new projects for the production of thermal and renewable energy. "Today, 5 MoUs and one MoU has been signed in the Chief Minister's Office between the top officials of 3 power corporations and 6 central undertakings of the state for the investment of Rs 1.60 lakh crore for the development of the energy sector, including various projects of power generation of more than 31 thousand 825 MW in the state," the Rajasthan government said in a release.

These MOUs and purchasing power agreements (PPA) will increase thermal and renewable energy production in the state, the release stated. Under these agreements, an MoU will be signed between Rajasthan Vidyut Utpadan Nigam Limited (RVUN) along with Coal India Limited, the National Thermal Power Corporation (NTPC) and NLC India for thermal based projects of 3325 MW capacity. Apart from this, the MoU between RVUN and NTPC Green Energy for 28 thousand 500 MW renewable energy based projects. These new projects will developed through joint ventures and an investment of Rs 1 lakh 50 thousand crore will be made on them. Similarly, to strengthen the power transmission system in the state, there will be an agreement for investment of Rs 10 thousand crore between Rajasthan Electricity Transmission Corporation and Power Grid Corporation.

Additionally, a Power Purchase Agreement (PPA) will also be signed between Rajasthan Urja Vikas Nigam and SJVN Green Energy for the supply of power through 600 MW solar power projects. Rajasthan Electricity Generation Corporation will enter into an agreement with NTPC for a 1600 MW coal based project in Chhabra Thermal Power Project and with NTPC Green Energy Limited for a 25000 MW solar/wind project. Also, RVUNL will also enter into MoU with Coal India Limited for a total of 4100 MW of projects, including a 1600 MW pit head coal based project, 2250 MW solar project, a 200 MW hydroelectric pumped storage project and 50 MW wind project. An MoU will also be signed with NLC India Limited for 125 MW pit head lignite based project and 1000 MW solar project.

In these joint ventures, NTPC will invest Rs 1 lakh 16 thousand crore, Coal India Rs 26 thousand 700 crore, NLC Rs 5 thousand 50 crore and Power Grid Rs 10 thousand crore. Additionally, an investment of Rs 2250 crore will also be made by SJVN Green Energy. There will be an MoU between the Rural Electrification Corporation and the state government for the development of the infrastructure sector. Apart from this, an MOU will also be signed between Rural Electrification Corporation (REC) Limited and the State Government with a view to providing financial resources to various undertakings of the Rajasthan Government for the development of the infrastructure sector of the state.

Under this, REC Limited will provide loans of Rs 20 thousand crores every year to various departments, undertakings, institutions and schemes of the state government. With this MoU, the vision of a leading Rajasthan will come true and there will be a rapid increase in projects related to the state's infrastructure sector like electricity, water, irrigation, metro, transport and agriculture, due to which the state will move towards becoming an economically prosperous state. Due to the mismanagement of the Energy Department and power companies, there was a continuous power crisis in the state. According to 2022-23 data, the State Generation Company is working with about 55 percent power generation capacity.

To provide electricity, expensive electricity has to be purchased from the exchange. Due to this, additional financial burden has fallen on the treasury due to the purchase of electricity worth more than Rs 3,700 crore from the exchange in 2022-23. At present, the debt burden on all power companies, including about Rs 88,700 crore on DisComs (distribution companies), is more than Rs 1 lakh 39 thousand 200 crore.