GAIL, RRVUNL inks MoU to form JV in Rajasthan

GAIL (India) and Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) signed a non-binding memorandum of understanding (MoU) to optimise the operations of RRVUNL's gas-based power plants in Rajasthan.

Under the agreement, RRVUNL and GAIL shall explore the possibility of transferring RRVUNLs gas-based power plant located in Dholpur and Ramgarh, Rajasthan to a proposed joint venture company (JVC) between GAIL & RRVUNL.

Further, both the companies will work together towards setting up of around 1,000 MW of solar and wind projects in suitable land parcels, thus creating an opportunity for round the clock (RTC) power.

RRVUNL, a Government of Rajasthan Undertaking Company under the Energy Department, Government of Rajasthan, has been entrusted with the job of development of power projects in Rajasthan along with operation & maintenance of state-owned power stations. RRVUNL is also exploring various opportunities for securing power to meet the growing energy demand of Rajasthan.

GAIL (India) is the largest state-owned natural gas processing and distribution company in India. The Company has a diversified business portfolio and has interests in the sourcing and trading of natural gas, production of LPG, Liquid hydrocarbons and petrochemicals, transmission of natural gas and LPG through pipelines, etc. GAIL has also participating interest in India and overseas in Oil and Gas Blocks. The Government of India holds 51.92% in the paid-up equity capital of the company as on 30 June 2024.

GAILs consolidated net profit jumped 77.54% to Rs 3183.35 crore in Q1 FY25 as compared with Rs 1792.99 crore in Q1 FY24. Revenue from operations (excluding excise duty) increased 5.94% YoY to Rs 34,737.77 crore during the quarter.

Shares of GAIL (India) declined 2.61% to close at Rs 227.35 on Thursday, 8 August 2024.

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