UP to sign deal with Tehri Hydro for Rs 2,400 cr solar energy plant

A joint venture will be created to develop the power project

Targetting renewable energy capacity of 10,700 megawatt (mw) by 2022, the Uttar Pradesh government will sign a memorandum of understanding (MoU) with THDC India Limited (formerly Tehri Hydro Development Corporation Limited) for setting up of a 600 mw solar power plant.

Entailing an investment of about Rs 2,400 crore, the solar power project will come up under the UP Solar Energy Policy 2017 and the contours of the Ultra Mega Renewable Energy Power Park (UMREPP) scheme of the union new and renewable energy ministry.

THDC India Limited will sign an agreement with state nodal agency UP new and renewable energy development agency (UPNEDA) for creating a joint venture for the solar project. The joint venture will have an authorised share capital of Rs 50 crore, which will be contributed by the THDC and UPNEDA in the ratio of 74 per cent and 26 per cent respectively.

Recently, the state cabinet meeting chaired by UP chief minister Yogi Adityanath had given its nod for signing an agreement with the THDC India Limited for the setting up of the solar park, which will comprise a 600 mw solar power plant in the first phase.

The solar power plant is estimated to cost Rs 4 crore per mw, thus totalling Rs 2,400 crore of investment.

Under the plan, the developer will offer competitive tariffs even before the solar power plant is completed and the solar energy is available for evacuation by the nearby transmission lines for subsequent distribution by the grid.

According to UP cabinet minister Sidharth Nath Singh, the solar power project will be ready within a shorter period of time and it would supply cheaper energy to the power consumers, including industry and farmers.

Meanwhile, the UPNEDA plans to contribute its share equity of Rs 13 crore in a lump sum through its corpus built by way of 3 per cent levy it has been charging on the services rendered by it over the previous years.

Additionally, the central government will provide a funding of 30 per cent of the project cost or Rs 20 lakh per mw, whichever is lower, under the central UMREPP scheme.

According to the Solar Energy Corporation of India (SECI), a solar power plant typically generates permanent employment for 2 people per mw during the 25 years of the project life. Besides, it creates temporary job opportunities for 10 persons per mw. This way, the 600 mw proposed solar power project in UP is estimated to create permanent and temporary job opportunities for 1,200 and 6,000 people respectively.

Last year, the UP government had even proposed to harness canals and water bodies to generate solar energy. The state was mulling to forging long term contracts with the private sector companies for the management of solar power resources.