Tamil Nadu [TNPSC] Current Affairs - 2020

NLC and Coal India to form JVC for Developing Solar and Thermal Power Assets

A Navratna Company of Government of India- NLC India Limited has signed an agreement with a Maharatna Company- Coal India Limited to form a Joint Venture Company (JVC) for developing Solar and Thermal power assets. In the Joint Venture Company, both NLC and Coal India will have equal 50:50 equity. This was informed on 3rd July 2020 by NLC India.

Solar and Thermal power assets of 5000 megawatts (5 GW) will be developed by the joint venture company.

The Joint Venture Company will be set up under the Ministry of Coal.

Background

4.5 billion Units- the total annual power requirement of Coal India Limited (including its subsidiaries), citing this large power requirement, the Ministry of Coal has tasked Coal India Limited to form a Net Zero Energy company (an entity that generates its own green power).

In November 2019 it was reported that under the Net Zero Company, a 3000 MW of Solar Power generation for Coal India Limited will be set up while for its subsidiaries, setting up 2000 MW of additional Thermal Power generation was planned.

NLC India Limited

Incorporated in the year 1956, NLC India Limited is headquartered in Tamil Nadu’s Neyveli. The company was earlier known as Neyveli Lignite Corporation Limited. It is a wholly-owned company of the Government of India.

Coal India Limited

Coal India Limited was founded on 1st November 1975 and is the largest coal-producing country in the world. It is headquartered in Kolkata.

Indian Government signs agreement for Two Projects in Tamil Nadu with World Bank Group

On 29th June 2020, an agreement was signed between the World Bank Group and the Government of India for providing urban poor in the state of Tamil Nadu access to affordable housing. The agreement signed has two projects under it- (i) Tamil Nadu Housing Sector Strengthening Program and (ii) Tamil Nadu Housing and Habitat Development Project.

The loans for both the project are from the lending arm of the World Bank Group the International Bank for Reconstruction and Development (IBRD). The maturity of both the loans including 3.5 years grace period is 20 years.

Tamil Nadu Housing Sector Strengthening Program

As per the agreement, a loan of USD 200 million has been sanctioned under the Program. The aim of the program is to support the ongoing efforts made by the government in the state for increasing affordable housing for low-income families. In order to achieve this, the program will work towards incentivizing the participation of the private sector by unlocking the barriers set by regulatory policies.

Tamil Nadu Housing and Habitat Development Project

For this project, a loan agreement of USD 50 million has been sanctioned as per the agreement. The objective of this project will be to strengthen the housing sector policies, regulations, and institutions of the state. Through the project, innovations in housing finance will also be supported.

Out of the USD 50 million for the project, as a part of innovation in housing finance, Tamil Nadu Shelter Fund will be provided an equity contribution of USD 35 million.