Coal India Limited (CIL) has approved a corporate guarantee of ₹3,160 crore in favour of its subsidiary CIL Rajasthan Akshay Urja Limited (CRAUL) to support debt funding for an 875 MW solar photovoltaic power project. The decision was taken at the company’s board meeting and disclosed under SEBI listing obligations.
Under the resolution, Coal India will provide a 100% corporate guarantee, allowing CRAUL to secure project financing while the parent company assumes contingent liability in case of default.
The project aligns with India’s renewable energy expansion targets and marks a strategic shift for Coal India, traditionally a coal producer, towards clean energy diversification. Experts say such guarantees enable subsidiaries to raise debt on favourable terms, leveraging the strong credit profile of the parent company without directly impacting cash flows.
This solar project also reflects Coal India’s broader commitment to clean energy growth, with the company aiming to scale renewable capacity in the coming years. The joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited provides additional risk mitigation and underscores alignment with state-level renewable energy goals.
The approval is seen as part of Coal India’s strategic move to diversify its energy portfolio, supporting national energy transition objectives while positioning the company for long-term sustainability.
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