Maharashtra Cabinet approves ultra mega solar power park of 2,500 mw

Sanjay JogUpdated: Thursday, April 07, 2022, 07:50 PM IST
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Also clears 50:50 JV between MahaGenco & NTPC for project development

Project to be developed on 70:30 debt equity ratio

Power generation cost is estimated at Rs 3.50 to 2.60 per unit

MahaVitaran has right to purchase entire or partial or zero power from the project

Maharashtra will have an ultra-mega solar power park with a total generation capacity of 2500 mw. It will be set up by a JV between the state-run MahaGenco and India’s largest power generator NTPC. Both MahaGenco and NTPC will have 50:50 equity in the JV. The state cabinet chaired by the Chief Minister Uddhav Thackeray on Thursday gave its approval. The state energy department has been appointed as a nodal agency for project development.

The solar park envisages an investment of Rs 1726.62 crore of which Rs 500 crore (Rs 20 lakh each per megawatt) from the Centre. The project will be set up on a 70:30 debt equity ratio. The JV will raise debt worth Rs 858.63 crore while MahaGenco and NTPC will contribute a total of Rs 367.98 crore comprising Rs 184 crore each towards equity. The JV will look for the suitable land for the proposed project.

According to the state energy department in its presentation to the state cabinet, the internal rate of return has been estimated at 9.10% while the annual revenue from the functioning of the solar park will be Rs 215 crore. The power will be generated at Rs 2.50 to 2.60 per unit. The solar park is expected to annually generate 4,599 million units.

The JV will enter into a power purchase agreement with state power distribution utility MahaVitaran will have a right to purchase the entire power generated from the solar park or partial drawal or zero purchase.

The Chief Minister’s Office said that the JV has been bestowed with a responsibility of adhering to the state’s renewable energy policy during the implementation of the proposed solar park. The state government has waived a one time fee and annual operation and maintenance fee from the solar park operator as per the recent guidelines issued by the central government.

According to the state’s renewable policy, the renewable power projects with generation capacity of 17,360 mw will be developed by March 21, 2025 of which solar power projects will have a generation capacity of 12,930 mw. At present, renewable power projects with generation capacity of 9,305 mw are operational of which 2,123 mw is generated from the solar power projects.

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