The Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has issued a Request for Selection (RfS) to establish standalone Battery Energy Storage Systems (BESS) with a capacity of 500 MW/1000 MWh under a Build-Own-Operate (BOO) model. The projects will be set up at RVUNL-owned power plants and substations of the Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPNL). Additionally, a “Green Shoe” option allows an extra capacity of 500 MW/1000 MWh. The selected projects are expected to be completed within 18 months from the signing of the BESPA. If the project is delayed, a six-month extension can be granted with penalties. Projects not commissioned within this extended period will result in forfeiture of the PBG
.

RVUNL’s 500 MW/ 1000 MWh Battery Energy Storage Project Boosting Rajasthan’s Grid Resilience

Shares of Indraprastha Gas Ltd (IGL) will be in focus, after the company announced the formation of a Joint Venture (JV) with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) for setting up a solar power project in the state of Rajasthan. This development follows the board approval dated March 29, and culminated with the signing of the Joint Venture Agreement on July 29, 2025. The JV marks a strategic step for IGL into the renewable energy sector through a partnership with a key state-run power generation company.

IGL shares in focus after formation of solar JV with Rajasthan government

The Rajasthan Cabinet has approved a major ₹15,600 crore joint venture between RVUNL (26%) and Singareni Collieries (74%) to build an 800 MW coal-based plant and 1,500 MW of solar capacity. In a move to boost global engagement, the state also launched a dedicated "National & International Pravasi Rajasthani Affairs" department and the GCC Policy-2025, which aims to establish 200 Global Capability Centres and create 1.5 lakh jobs by 2030. Additionally, the Cabinet sanctioned land for solar parks in Bikaner and Chittorgarh, along with a major 765 kV substation in Barmer to strengthen the renewable energy grid.

Rajasthan Cabinet Approves ₹15,600 Cr Energy JV & New Diaspora Department

The FY24 audit report notes delays in servicing term loans from unrated lenders. However, the company has been timely in repayments over the past 7 months. Due to weak internal accruals, RRVUNL relies on GoR support and external borrowings to meet obligations.


RRVUNL’s receivables from Rajasthan discoms dropped from ₹22,815 Cr in FY22 to ₹2,324 Cr in FY24, with ₹811 Cr overdue beyond six months. Delays strained cash flows and caused past debt defaults. However, post-LPS scheme (June 2022), collections improved, and repayments have been regular since Nov 2022.


RRVUNL’s operations require ongoing capex for modernisation. Upcoming debt-funded projects, including 2,000 MW solar capacity and FGD installation, may further strain its capital structure.


The issuer has made timely interest payments.

  Sh. Devendra Shringi,  Chairman & Managing Director  

RRVUNL is wholly owned by the Government of Rajasthan (GoR). Considering the strategic importance of the power sector to the state government, it has extended support in the past which is likely to continue in future too. 


RRVUNL has over two decades of successful operations since its inception in July 2000. Its activities are overseen by GoR-nominated administrators and a seasoned management team with extensive experience in power generation.


RRVUNL's 8,597.35 MW capacity is backed by long-term coal FSAs (SECL, NCL, PKCL), captive blocks in Chhattisgarh, and gas supply from GAIL, OIL, and ONGC, ensuring stable fuel costs.


RRVUNL has long-term PPAs with Rajasthan discoms (AVVNL, JVVNL, JDVVNL), ensuring assured offtake. Tariffs follow RERC guidelines and are based on a two-part structure: capacity and energy charges.


Security Name: 9.00% Rajasthan Rajya Vidyut Utpadan Nigam Limited 24 Dec 2026

ISIN: INE891F08018

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