Coal India Limited, India's largest coal producer, has approved incorporation of a joint venture with UP Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) to develop renewable energy projects in Uttar Pradesh. The board approved a controlling equity stake for Coal India of 51 per cent while UPRVUNL will hold 49 per cent, and the name and date of incorporation will be announced later. The decision forms part of a strategic push to broaden the public sector firm's energy portfolio beyond coal.

The joint venture formation is subject to approvals from the Government of Uttar Pradesh, the Department of Investment and Public Asset Management and the Ministry of Coal. The venture has been tasked with the full lifecycle of renewable projects, including development, construction, operation and maintenance, focusing on scalable delivery. Its remit covers solar power, floating solar installations, pumped storage projects (PSP), wind energy and allied activities.

Power generated will be sold under applicable laws and policy frameworks once arrangements are finalised. The move aims to combine the complementary strengths of a national miner and a state generation utility to enable siting, land access and operational collaboration. The alliance is intended to support regional energy security, strengthen grid flexibility and accelerate deployment of clean capacity across the state.

Uttar Pradesh had over 6.6 gigawatt (GW) of installed renewable capacity by the end of December 2025, with solar contributing over 3.8 GW, and the joint venture intends to build on this base. The partnership will pursue storage options such as pumped storage projects to balance variability and support peak demand, while project timelines, capacity targets and financing will be disclosed after regulatory clearances. The arrangement is framed as part of a wider trend of public sector diversification into renewables as policy support and market opportunities evolve.