New Delhi (Agency): State-owned company SJVN Ltd has entered into initial agreements with Oil & Natural Gas Corporation (ONGC) and Sambhar Salts Limited (SSL). These agreements aim to develop solar parks and projects.
SJVN Ltd took this step by signing two Memorandums of Understanding (MoUs). The company’s Chief Managing Director, Nand Lal Sharma, announced these agreements. He said, “The MoU with ONGC will pave a way for joint development of renewable energy projects.” This includes a wide variety of projects. They will focus on “offshore & onshore solar, wind, hybrid, round the clock (RTC) projects.” But that’s not all. The partnership will also explore “new technologies such as green hydrogen, green ammonia etc.”
How will these projects take shape? There will be a joint venture company. This company will be formed between ONGC and SJVN Green Energy Ltd (SGEL). Here’s something important to note: SGEL is a fully-owned part of SJVN. Sharma provided this information.
Now, what about the agreement with Sambhar Salts? SJVN has plans for this as well. “Under the MoU with Sambhar Salts, solar projects/parks will be developed by SGEL,” Sharma mentioned. But there’s a special aspect to this. The solar projects will be set up “in a phased manner.” The chosen area for these projects is the “identified land bank of SSL,” the Chief Managing Director explained.
There’s more to these collaborations. They are not just about building projects. Sharma highlighted another essential part of their partnership. He said, “both the parties shall explore avenues for equity partnership.” What does this mean? Both companies will consider becoming equal partners in the projects. But they’ll also think about “revenue sharing mechanism.” This will be for the “development of solar projects.” And how will they decide the specifics of this partnership? Through “project specific implementation agreements.”
These agreements are a step forward in the renewable energy sector. By working with ONGC and Sambhar Salts, SJVN is aiming to expand its reach in solar energy development. The collaborations highlight a combined effort to make the most of renewable energy resources. With a focus on new technologies, such as green hydrogen and green ammonia, the partnerships promise a brighter, greener future.