MoU Between CIL and UPRVUNL

• 14 May 2025

Why in News? 

Coal India Limited (CIL) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) have signed a Memorandum of Understanding (MoU) to set up a solar power project in the state. 

Key Points 

• About the MoU: 
  • This agreement is part of CIL’s strategic initiative in the green energy sector.  
    • It is a strong step towards meeting the rapidly growing energy demand of Uttar Pradesh. 
  • This is a non-binding agreement with the aim of setting up a solar power project of 500 MW capacity within Uttar Pradesh . 
• Solar Energy: 
  • Solar energy, known as energy obtained from the sun, is a clean and renewable energy source. It is harnessed through solar technology, which is mainly of two types: 
    • Solar Thermal: In this the heat of the sun is used to heat water. 
    • Solar Photovoltaic (PV): It uses the photovoltaic effect to convert the sun's rays into electrical energy. 
  • Uses: 
    • Solar technologies are scalable and flexible, capable of powering entire cities through solar farms. 
    • Electricity can be supplied even to remote areas through decentralized systems. 
    • Homes and commercial buildings can be provided with energy by installing solar panels on rooftops. 
      • Example : Cochin International Airport is one such example where solar energy is being used effectively. 
  • Importance:  
    • Reduction in dependence on fossil fuels. 
    • Reducing carbon emissions. 
    • Improvement in air quality. 
    • Promote energy access and security. 

 Coal India Limited (CIL) 

• Introduction: CIL is a government-owned coal mining company in India, responsible for production and management of coal resources in the country. 
  • It was established in 1975 and is the world's largest coal producing mining company
• Organisational Structure: CIL is classified as a 'Maharatna' public sector enterprise. It operates through 8 subsidiaries like Eastern Coalfields Limited (ECL), Bharat Coking Coal Limited (BCCL) . 
  • Mahanadi Coalfields Limited (MCL) is the largest coal producing subsidiary of CIL. 
• Strategic Importance: More than half of India's installed power capacity is coal-based, with CIL supplying about 78% of the country's total coal production. 
  • Coal also contributes 40% to India's primary commercial energy needs. 
• Mining Capacity: CIL operates in 84 mining areas across eight Indian states and manages a total of 313 active mines.  

 Uttar Pradesh State Power Generation Corporation Limited (UPRVUNL)  

• It is a thermal power generation undertaking wholly owned by the state government, which operates five thermal power plants located in different areas of the state.  
• It was formed on 25 August 1980 under the Companies Act, 1956 to construct new thermal power projects in the state.  
• The first project constructed by the corporation was Unchahar Thermal Power Station (2x210 MW) , which was handed over to NTPC on 13 February 1992. 
• Later, under the Uttar Pradesh State Electricity Reform Act 1999 and Uttar Pradesh Transfer Scheme 2000, Uttar Pradesh State Electricity Board was reorganized and divided into three public sector undertakings: 
  • Uttar Pradesh State Electricity Generation Corporation Limited (for electricity generation) 
  • Uttar Pradesh Power Corporation Limited (for electricity distribution) 
  • Uttar Pradesh Power Transmission Corporation Limited (for electricity transmission).