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 .
- This agreement is part of CIL’s strategic initiative in the green energy sector.
- 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.
- 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:
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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).