NEW DELHI: Rajasthan, India’s largest state by area, has signed a $35 billion investment agreement with the UAE government to explore the development of a 60 GW solar, wind and hybrid energy project.
Rajasthan’s Principal Secretary of Industries Ajitabh Sharma and UAE Minister of Investment Mohamed Hassan Al-Suwaidi signed a memorandum of understanding for the investment on Tuesday in the state capital of Jaipur.
Under the deal, the UAE will help set up renewable energy projects in the western district of Rajasthan, the state government said in a statement. India’s largest desert, Thar, is located in the area.
“This venture will be a milestone in fulfilling the energy needs of Rajasthan by installing a long-term power generation project in which modern cutting-edge technology would be used,” the government of Rajasthan said.
The UAE will also appoint a developer to coordinate with Rajasthan officials to launch the project within the agreed timeline, which was not specified.
India, the world’s third-largest consumer of electricity, currently has installed about 200 GW of renewable energy. It is aiming to install 500 GW of renewable energy by 2030 to meet its goal of net-zero emissions by 2070.
“To achieve this target, Rajasthan will have to install 250 GW of solar plants. This partnership with the UAE will prove to be an important step in achieving this goal,” said Rajasthan’s Chief minister Bhajan Lal Sharma, who was present during the signing ceremony.
He is also expecting the new agreement to help boost the local economy.
“I am confident that this MoU will pave the way for employment generation, economic development, industrial progress and overall prosperity in Rajasthan,” Sharma said.
During his meeting with Rajasthan officials, Al-Suwaidi said that energy transition was a key pillar of the UAE’s diversification agenda.
“This project highlights our unwavering commitment to advancing clean energy solutions,” Al-Suwaidi said, as quoted by Emirati state news agency WAM.
“Rajasthan, with its favorable climate and vast landmass, offers the ideal environment for this initiative, serving as a testing ground for innovative technologies that will shape the future of energy,” he said.
India and the UAE signed the Comprehensive Economic Partnership Agreement in 2022, which has since significantly advanced bilateral exchanges.
The UAE is the largest Middle Eastern investor in India, with investments amounting to about $3 billion in the financial year 2023-24, according to Indian government data.
