The Maharashtra state government has cleared two solar power projects that will be set up by Maharashtra State Power Generation Corporation Ltd (Mahagenco) in an effort to increase the share of solar power projects in the state’s total generation capacity.
The cabinet also approved raising of funds for the projects — one of 187 Megawatt (MW) and another of 390 MW. Currently, MahaGenco has 180 MW of solar generation capacity.
“The cabinet approval will give a boost to the solar power projects. With climate change coming back into focus, there is a need to reduce dependence on non-renewable sources of energy,” said an official from the state secretariat.
Of the total generation capacity of 187 MW, 50 MW is proposed in the Osmanabad district, 60 MW in Latur, 20 MW in Bhusawal, 12 MW each at Parli and Koradi, 8 MW at Nashik and 25 MW in Dhule.
The project financing agreement for the 187MW solar project has been approved and a loan of up to Rs 588.21 crore will be taken from KFW-Bank, Germany. The agreement for these projects was approved on behalf of the state government, in coordination with the central Government and with the consent of the finance department.
The project will be set up on an Engineering-Procurement and Construction basis. The cabinet also sanctioned raising of Rs 158.29 crore for the project through internal sources and loans from financial institutions.
For the 390 MW of solar power projects, 130MW capacity (90 MW, 30 MW, and 40 MW) will come up at different sites in the Washim district on the EPC model. Under the Washim-1 category, two projects with 20 MW each and another with 40 MW will be developed. Further under Washim 2 category, 145 MW in Chandrapur district, and three projects with 25 MW capacity each will come up in Yavatmal district. A loan of Rs 1564.22 crore has been sanctioned at an interest of 0.05 percent per annum was approved to be taken from KFW Bank, Germany. Approval has also been given for repayment of the loan within a maximum period of 12 years. In addition to the loan, approximately Rs 364.18 crore in the form of capital has also been sanctioned to be raised from internal sources or through loans from financial institutions.