GAIL (India) and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) have signed a joint venture (JV) agreement to transfer two existing gas-based power plants and develop around 1,000 MW of renewable energy (RE) capacity in Rajasthan.

The agreement, executed on July 29, involves the transfer of RVUNL’s 330 MW Dholpur and 270.5 MW Ramgarh gas plants to a new JV company, subject to GAIL’s due diligence. The JV will also set up 750 MW of solar and 250 MW of wind capacity, creating a hybrid model to bundle RE with gas generation for a flexible and cleaner power mix. This approach supports India’s energy transition goals while ensuring grid stability through firm capacity.

GAIL and RVUNL will each hold a 50 percent stake in the JV, which will start with an authorised and paid-up capital of Rs 10 lakh. The board will have six directors, three nominated by each partner. Both parties will enjoy right of first refusal on equity transfers, with a five-year lock-in. Following due diligence, RVUNL will form a wholly owned subsidiary, later converted into the JV after GAIL’s investment.