The estimated investment in this project stands at Rs 3,000 crore, said an official release quoting the state's new and renewable energy minister Hardeep Singh Dang on Tuesday.
The International Finance Corporation, World Bank and Power Grid have granted in-principle consent for providing aid for the said project development.
The primary feasibility study of the project has been completed in collaboration with the World Bank.
The project is likely to begin power generation by year 2022-23, the minister said.
Dang said that the work of transmission line route survey will begin from the project area to Khandwa sub-station by power grid this month.
Tender for the study of environmental and social impact of the project area is also being issued.
Madhya Pradesh Power Management Company has agreed to purchase 400 MW power from the project, he said.
The project will have floating solar panels of 600 MW power generation capacity in the backwaters of Omkareshwar dam. It is estimated that in 2 years, the project will start providing cheap and good quality power.
Electricity will be produced in about 2000-hectare water area by installing solar panels in the dam.
Solar panels will float on the surface of the water in the reservoir, the release said.
When the water level of the dam is low, it will automatically adjust upwards and downwards. Strong waves and floods will have no effect on them. The sun's rays will continue to produce electricity, it added.
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