State-owned gas utility GAIL (India) Limited and Rajasthan Rajya Vidyut Utpadan Nigam Limited have inked an important agreement aimed at overhauling the energy infrastructure in the state of Rajasthan. The two companies signed a non-binding memorandum of understanding on Thursday for exploring the possibility of 1 GW of solar and wind energy projects in the state, along with jointly operating gas-based power plants.
The agreement by GAIL and RRVUNL envisages bringing the optimum operations from the gas-based power plants located at Dholpur and Ramgarh in Rajasthan. This would also include transferring these plants by the two companies to a proposed joint venture company between GAIL and RRVUNL. The attempt is toward tapping enhanced energy efficiency and higher renewable energy production within the state of Rajasthan.
These would be developed on suitable land parcels across the state with an aggregate capacity of about 1,000 MW of solar and wind projects. However, the MoU is silent on the investment and timeline for such projects. Both entities would carry out detailed feasibility studies to establish the techno-commercial viability of the projects before the joint venture is formed.
GAIL already has a significant presence in Rajasthan State, where it has been meeting the natural gas needs of its industrial customers through its wide and strong network of pipelines measuring about 1,090 km, covering all major industrial areas like Bhiwadi, Neemrana, Khuskhera, Kota, Jaisalmer, and Chittorgarh. Prominent customers among all areas are Chambal Fertilizers and Shriram Fertilizers under the umbrella of GAIL.
GAIL, besides industrial supplies, is at the forefront of green and clean energy supplies in Rajasthan. It serves through 19 city gas distribution entities within the state, with Kota, Bhilwara, Bhiwadi, Chittorgarh, and Jodhpur among them. These units gas the residential, commercial, and small industrial sectors and transport, thus serving as aids for tectonic shifts towards more sustainable energy solutions in the state.
Other than its natural gas businesses, GAIL owns and operates the 1,427 km-long Jamnagar-Loni LPG pipeline, and a major portion of this, 694 km, runs from Abu Road to Alwar in Rajasthan. This is an important infrastructure for ferrying LPG across the region, further entrenching GAIL’s position in the Rajasthan energy scene.
GAIL is also actively contributing to the Jal Jeevan Mission scheme in Rajasthan by providing polymers for manufacturing HDPE pipes used for a reliable tap water supply to rural households. This manifests GAIL’s commitment to supporting essential infrastructure projects within the state.
This partnership of GAIL with RRVUNL is one giant leap toward Rajasthan’s expanding renewable energy capacity while deriving maximum efficiency from the existing gas-based power plants. This collaboration would be pivotal in the state’s just energy transition, promising, as it does, an economic growth trajectory and environmental sustainability.
Source: PTI