According to reports, Welspun Energy has bagged contract to develop a 50 MW grid interactive solar project in Baramati from the state power generator Mahagenco.
Mahagenco has planned to set up the project on PPP basis, in which the power producer has to build, operate and maintain the plant for 25 years and also share the revenue with the state power generation company.
“Welspun Energy has been issued letter of agreement as it has emerged as the highest revenue sharing bidder for Mahagenco,” the state power generator said in a statement today.
Mahagenco had received bids from Tata Power and Essel Power, as well.
Welspun Energy has offered 38.75 per cent revenue share over a period of 25 years with a guaranteed revenue from the project at 19 per cent capacity utilisation factor (CUF) annually.
As per the agreement, Welspun Energy will be fully responsible for part finance, design, engineering, manufacturing, supply, erection, testing and commissioning of this grid interactive solar power plant, including operation and maintenance for 25 years.
Further, any fall in generation will have to be compensated by the company.
“The project will be installed in two phases. The first phase of 36 MW will be installed on 74.74 hectares of government land, which Mahagenco has already acquired. The remaining 14 MW capacity will be installed after acquisition of balance 29.97 hectares required for the project,” the statement said.
Mahagenco will invest only Rs 150 crore for the said project and the financial assistance will be provided through a soft loan from Germany-based KFW with a very low rate of interest, it said while the balance finance will be shared by Welspun.
“In future, Mahagenco will also extend the leverage of soft loans from KFW through such a PPP model to its proposed solar project in Osmanabad and at other locations in the state as per availability of land,” according to the release.