Uttar Pradesh set for 2 GW ‘ultra-mega’ renewable energy park
The state cabinet has approved the 26:74 joint venture between Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and Tehri Hydro Development Corporation India (THDCIL) to establish the park.
The state government of Uttar Pradesh has paved the way for the establishment of a 2 GW ‘ultra-mega’ renewable energy power park in the state.
The cabinet headed by chief minister Yogi Adityanath approved the Memorandum of Understanding (MoU) for a joint venture between Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and Tehri Hydro Development Corporation India Limited (THDCIL) to establish the park.
The joint venture will have authorized share capital of Rs 50 crore, of which THDCIL will hold 74% equity stake and UPNEDA the remaining 26%. In this way, UPNEDA’s equity investment in the venture will be just Rs 13 crore.
The state cabinet also approved the Memorandum of Association and Articles of Association for the JV.
The initial target is to set up 600 MW solar power generation capacity in the park at a total investment of Rs 2400 crore, calculated based on Rs 4 crore per megawatt.
The state government stated that developers would be able to quote competitive rates for solar power with the arrangement in place for land and connectivity (to evacuate the power generated to the nearest the substation) before setting up the power plant.
As per an estimate by the Solar Energy Corporation of India, the 600 MW solar plant will provide direct and indirect employment to 7200 people.
The ‘ultra-mega’ renewable energy power park is to be set up in Uttar Pradesh under the Solar Energy Policy-2017 of the state government and the Ultra Mega Renewable Energy Power Park Scheme of the Ministry of New and Renewable Energy (MNRE), Government of India.
Under the MNRE scheme, the park will receive central financial assistance of up to Rs 20 lakh per MW or 30% of the project cost, including grid-connectivity cost, whichever is lower.