State PCS - Rajasthan (RAS)

• 07 May 2025

Power Purchase Agreement with RVUNL

Why in News? 

NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Ltd. (NLCIL), has signed a Power Purchase Agreement (PPA) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for its planned 810 MW solar power project. 

 Key Points 

• Project Significance: 
  • The solar power plant will be located at Pugal Solar Park in Bikaner district, Rajasthan. 
  • The site, situated on barren land, benefits from high solar radiation, making it ideal for solar energy production. 
  • This initiative is part of the Ministry of New and Renewable Energy’s Ultra Mega Renewable Energy Power Parks (UMREPP) scheme – Mode B, awarded through competitive tariff-based bidding. 
• Environmental Impact: 
  • The project is expected to generate nearly 2 billion units of green electricity annually. 
  • It will offset about 1.5 million metric tonnes of CO₂ emissions per year, contributing to India’s low-carbon transition. 
• Infrastructure and Development: 
  • The project will be developed within RVUNL’s 2000 MW Pugal Solar Park. 
  • It marks a milestone for NLCIL, the first CPSU in India to establish 1 GW of renewable energy projects. 

 Ultra-Mega Renewable Energy Power Parks (UMREPP) Scheme 

• It is a scheme to develop Ultra Mega Renewable Energy Power Parks (UMREPPs) under the existing Solar Park Scheme. 
  • The scheme was rolled out by the Ministry of New & Renewable Energy (MNRE) in 2014. 
  • Solar Park Scheme is also a scheme of MNRE to set up a number of solar parks across various states in the country. It proposes to provide financial support by the Government of India to establish solar parks. 
• The objective of the UMREPP is to provide land upfront to the project developer and facilitate transmission infrastructure for developing Renewable Energy (RE) based Power Parks with solar/wind/hybrid and also with storage systems.