India News: 'Mahagenco's 50 MW solar project will be unique PPP model (4 March 2014)

'Mahagenco's 50 MW solar project will be unique PPP model'

MUMBAI: The Mahagenco's 50 MW grid interactive solar project at Shirsuphal in Baramati will be the first of its kind and unique PPP model project in Indian Power sector, sources in the energy department said.

It is based on revenue share basis for a period of 25 years and this is a totally new concept in Indian power sector.

This PPP model is unique as even though the ownership of this project belongs to Mahagenco, it will not have to invest the entire amount but will get guaranteed revenue returns for a period of 25 years, the sources stated.

As a response to Mahagenco's international competitive bidding process, M/s. Welspun Energy Ltd. have been issued LoA being the highest revenue sharing bidder for Mahagenco. Messrs Welspun Energy Ltd has offered 38.75% revenue share to Mahagenco over the period of 25 years with a guaranteed revenue from the project at 19% Capacity Utilization Factor (CUF) annually, sources said. Further, M/s Welspun Energy Ltd. will be fully responsible for part finance, design, engineering, manufacturing, supply, erection, testing and commissioning of this grid interactive solar power plan. — including operation and maintenance of this plant for the period of 25 years. Any fall in generation will have to be compensated by the selected bidder, the sources stated.

This project will be installed in two phases. Initially in first phase, 36 MW solar capacity will be installed on 74 hectares government land already acquired by Mahagenco. The remaining 14 MW capacity will be installed with same terms and conditions after acquisition of balance 29.97 hectares of land.


source from: http://timesofindia.indiatimes.com/home/environment/developmental-issues/Mahagencos-50-MW-solar-project-will-be-unique-PPP-model/articleshow/31424449.cms