Indraprastha Gas Ltd (IGL) has approved the setting up of a joint venture with Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL) to develop a 500-megawatt-peak (MWp) solar power project.

"This strategic initiative aligns seamlessly with IGL’s mission to diversify its portfolio and spearhead the transition to clean energy towards achievement of its net zero targets. Recognizing the paramount significance of renewable energy, the company has formally identified renewable energy as a pivotal business segment in its recently rolled out diversification strategy," said a statement from IGL.

The 500 MWp greenfield solar power plant is proposed to be set up in Bikaner district of Rajasthan. IGL will have 74% stake in the JV while Rajasthan government-owned RUVNL will hold the remaining 26%. RVUNL will provide the JV with land in its upcoming solar park and facilitate seamless power evacuation, ensuring an efficient and streamlined execution of the project, the statement said.

With an estimated capital outlay of ₹2,066 crore, the project will be financed through a mix of debt and equity and is slated for completion within 18 months from the formalization of the joint venture.