Sterling and Wilson Renewable Energy Secures ₹3,490 Crore 875 MW Solar Contract from Coal India

Coal India Limited (CIL) has declared Sterling and Wilson Renewable Energy Limited (SWREL) as the L1 bidder for a utility-scale solar project in Rajasthan. The total contract value is approximately ₹3,490 crore, inclusive of taxes and a two-year comprehensive operation and maintenance (O&M) period. The project involves an 875 MW AC grid-connected solar PV installation, which corresponds to a DC capacity of 1,182 MWp (DC), to be developed on a turnkey Engineering, Procurement, and Construction (EPC) basis. The site is situated in Pugal, Bikaner district, Rajasthan.

Project Scope and Technical Specifications

The 875 MW (AC) project is located within the 2,000 MW Solar Park developed by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL). Under the turnkey EPC scope, SWREL will manage the full engineering, procurement, construction, and grid connectivity requirements. Technical parameters mandate the supply of PV modules with a minimum capacity of 1,182 MWp, along with mounting structures, inverters, transformers, and the execution of all related civil works.

Performance requirements include a minimum guaranteed net electrical energy generation of 1,916,250,000 units (kWh) for the first year, maintaining a Capacity Utilization Factor (CUF) of at least 25%. The project features a 24-month completion timeline from the date of commencement. However, the Scheduled Commercial Operation Date (SCOD) may be extended automatically by up to six months or until the associated transmission system by RVPN is commissioned, whichever occurs earlier.

Strategic Significance for Coal India Limited

This award represents the first solar EPC contract granted by Coal India to SWREL. The project is part of a strategic acceleration following criticism from the Comptroller and Auditor General (CAG) regarding “tardy implementation” of CIL’s solar initiatives, which had reached only 4.08% of its target by 2024. CIL has since ramped up its renewable energy strategy, aiming for 3 GW of solar capacity by FY28 and a long-term goal of 5 GW by 2028-29.

To facilitate project execution, the CIL Board has approved a ₹3,160 crore corporate guarantee for its subsidiary, CIL Rajasthan Akshay Urja Limited, to assist in securing debt funding. Financial data indicates CIL has incurred ₹9.61 billion (~$106.11 million) in solar capital expenditure (CAPEX) in FY26 through January. This represents a 132% achievement against its progressive target for the period, surpassing the full-year solar CAPEX target two months ahead of schedule.

SWREL Financial Milestones and Execution Capability

The Coal India contract, paired with a concurrent 50 MW AC solar project win in Maharashtra from a private Independent Power Producer (IPP), represents an aggregate daily win of approximately ₹3,550 crore. These contracts push SWREL’s total domestic EPC order inflows for FY26 beyond ₹10,062 crore, significantly exceeding the company’s initial annual target.

This influx of orders signals a financial turnaround for SWREL, which had faced a slump post-FY21. Following its acquisition by Reliance, the firm has undergone a “clean-up drive,” exiting various overseas projects to sharpen its focus on the domestic market. Chandra Kishore Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, stated that the company remains on a strong growth trajectory, benefiting from the momentum in India’s renewable sector.

SWREL currently maintains a global portfolio of 26.1 GWp (commissioned and under construction) and an O&M portfolio of 10.1 GWp across 28 countries, including operations in the Middle East, Africa, Europe, Australia, and the Americas.

Project and Financial Summary