Rajasthan Sets Up Joint Ventures for Energy and Metro Rail Projects

The Rajasthan Cabinet has approved the creation of four joint venture companies in the energy sector. These ventures will focus on renewable and thermal power generation and transmission projects. The Cabinet, led by Chief Minister Bhajanlal Sharma, also sanctioned metro rail project developments in the state.

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Energy Sector Initiatives

Deputy Chief Minister Premchand Bairwa, Industry and Commerce Minister Rajyavardhan Singh Rathore, and Parliamentary Affairs Minister Jogaram Patel shared details about these decisions. According to an official statement, the Cabinet also endorsed forming an infrastructure investment trust.

Bairwa mentioned that under the Metro Rail Policy 2017, a joint venture company between the central and state governments was approved. This venture aims to develop, operate, and implement current and future metro rail projects in Rajasthan.

Metro Rail Projects

The joint venture will receive financial assistance from the Centre in the form of share capital and loans for metro project costs. Additionally, technical and administrative support will be provided for these projects.

Patel highlighted that the government is striving to make Rajasthan self-reliant in energy. In line with a Memorandum of Understanding (MoU) signed on March 10, 2024, with various central public sector enterprises, proposals for forming joint venture companies were approved.

Joint Ventures with Central Units

The state government will hold a 26% share in these joint ventures, while central government undertakings will have a 74% share. Rathore stated that two separate joint ventures will be established between Coal India Limited and RVUNL—one for a thermal project and another for a renewable energy project.

A joint venture between NTPC Green Energy and RVUNL will also be formed to set up renewable energy projects, including solar, wind, and hybrid energy of 25,000 MW. This initiative is expected to attract an investment of Rs 1 lakh crore to the state.

Infrastructure Investment Trust

In compliance with guidelines from the Union energy ministry, Rajasthan Vidyut Prasaran Nigam Limited (RVPN) will form an Infrastructure Investment Trust (InvIT). This trust will be registered with SEBI. The Cabinet has also approved authorising RVPN to monetise its operational transmission assets through InvIT.

Patel added that during the vote on account for 2024-25, the state government announced plans to introduce an InvIT in the transmission corporation. This move aligns with efforts to enhance infrastructure development in Rajasthan.

The Cabinet's decisions reflect a comprehensive approach to advancing Rajasthan's energy sector and infrastructure development.