NEW DELHI: As many as six state-owned companies including BHEL and Power Grid Corporation today signed an initial agreement for setting up world's largest 4,000 MW ultra mega solar power project in Rajasthan.

"The MOU signed today will have to get the approval of the Cabinet and then the project will move forward," Minister of Heavy Industries and Public Enterprises Praful Patel said at the pact signing ceremony here today.

He said that once completed this project will be the largest single location solar plant spread across 19,000 acres of land at Sambhar in Rajasthan.

It envisages an investment of Rs 7,500 crore in the first phase, Chairman and Managing Director BHEL B P Rao said here.

The Department of Heavy Industry would set up a joint venture company for executing this project.

The JV company will have equity participation of 26 per cent from BHEL, 23 per cent from SECI (Solar Energy Corporation of India), 16 per cent from SSL (Sambhar Salt Ltd), 16 per cent from Power Grid, 16 per cent from SJVNL (Satluj Jal Vidyut Nigam) and 3 per cent from REIL (Rajasthan Electronics & Instruments Limited).

The project will come up on surplus land available with SSL in Sambhar, Rajasthan. The equipment will be supplied by BHEL, power evacuation by Power Grid, sale of electricity by SECI, operation & maintenance by REIL and project management by SJVNL.

The project will be developed in different phases in 7 to 8 years. The first phase of 1,000 MW is planned to be set up in about three years. The other 3,000 MW will be set up in subsequent phases.

The Solar PV (photo-voltaic) power plant will use PV modules based on Crystalline Silicon technology.

With an estimated plant life of 25 years, the 4,000 MW of the solar plant is expected to supply 6,400 million units of energy per year and consequently help to reduce carbon dioxide emissions by over 4 million tonnes per year.

Source : economictimes.indiatimes.com