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Tata, Welspun, Essel Power bid for Mahagenco’s 50-MW solar plant

According to reports, Maharashtra State Power Generation Co. (Mahagenco) has received expressions of interest from Tata Power, Welspun Energy and Essel Power to set up a 50-MW solar plant on public-private partnership (PPP) model at Shirsuphal in Baramati district.

Mahagenco has planned to set up a 50-MW solar project in Baramati on a public-private partnership basis, in which the power producer will have to build, operate and maintain the plant for 25 years and even share revenue with the state power generation company.

“This is for the first time that we are trying out this model. We have so far received three bids from Tata Power, Welspun Energy and Essel Power,” Mahagenco managing director Asheesh Sharma told PTI.

On the revenue sharing model, Mr Sharma explained, “The producer will receive a revenue share over a period of 25 years based on the Merc approved tariff. This revenue share between the bidder and Mahangenco will be discovered through the bidding process.”

For the project, Mahagenco will arrange land, get necessary approvals and distribution infrastructure.

“Under this model, Mahagenco will pay Rs. 3 crore per megawatt as its contribution till the commissioning of the project. Once the project is commissioned and revenue starts generating, the developer will have to share some percentage of the income with us, which will be decided later,” he said.

Mahagenco’s investment into the project would be financed by the Asian Development Bank. Deloitte is advising Mahagenco to develop the bidding process.

The state power generator has built solar capacity of 125 MW at Sakri, Dhule district, and plans to add another 25 MW there.

“We wish to take the capacity in Sakri to 150 mw from the current 125 mw. We expect to add 25 mw in the next three-four months,” Mr Sharma said.

“If the new PPP model is successful, we will then look at setting up another 200-250 mw capacity by FY15.”

As of 3:05 p.m., shares in Tata Power  were trading at Rs. 78.90 apiece on the BSE, up 1.94 per cent from the previous close.

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