According to reports, in its biggest investment so far, the Samajwadi Party government will enter into agreements worth Rs 2,300 crore with eight firms in the solar power sector on August 8.
This will also be the largest investment being brought into UP, after the government instituted the Solar Power Policy 2013. On Thursday, state’s New and renewable Energy Development Authority (NEDA) will sign an MoU with the National Hydroelectric Power Corporation (NHPC) for setting up a 100 MW solar power plant in Jalaun.
According to the MoU, NHPC will be required to set up a joint-venture within three months. While NEDA will provide the land and contribute in terms of equity, the power company will be responsible for power generation. The 100 MW NHPC unit is also slated to be the largest single solar plant unit in the country, till date.
The government will also sign pre-purchase agreements (PPAs) on August 8 with seven power companies for total power generation of 130 MW. With rates of bidding ranging between Rs 8.01 to Rs 9.33 per unit, the state government will also, as part of the PPA, agree to purchase power for 12 years.
According to the agreed arrangement, the state government will bear the cost of transmission infrastructure, while the remaining overheads will have to be borne by the production companies. All power generated by the companies will be bought by the UP government for the first 12 years of setting up the generation plants.