A Memorandum of Understanding (MoU) was signed between the state-run power company Rajasthan Vidyut Utpadan Nigam Limited (RVUNL) and Coal India Limited on Thursday aimed at ending the ongoing coal crisis.

Under this MoU, Coal India will set up a solar project of 1190 MW capacity in Rajasthan, as well as an investment of Rs 5,400 crore will be made.

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The agreement was inked in the presence of Union Coal Minister Prahlad Joshi, Chief Minister Ashok Gehlot, and Energy Minister Bhanwar Singh Bhati in Jaipur.

Under the deal, Coal India Limited will have to set up this project in the next two years.

The state government has given the responsibility of developing a 2000 MW Solar Park to RVUNL. For this, it has allotted 4,846 hectares of land in Bikaner.

In the solar park, while a project of 810 MW capacity will be set up by the production corporation itself, the other 1190 MW project will be set up by Coal India Limited.

On the occasion, Gehlot raised the issue of compulsion to buy 10 per cent foreign imported coal and said that it has been criticized a lot and should be considered.

On this, Joshi made an announcement from the stage itself saying that the Central government has withdrawn it, to which the Chief Minister said that it was a good decision.

“This has brought great relief. You solved the problem without me telling about it,” Gehlot added.

The Union Minister described Gehlot as the senior-most leader of the country and said that “we will also work under your leadership”.

On this, the Chief Minister told Joshi that “you have done half the work without meeting me”.

“The requirement to buy foreign imported coal was abolished. It shows your positive thinking. I am grateful to you.”