BHEL signs MoU for setting up an Ultra Mega Solar Power Project at Sambhar in Rajasthan

New Delhi: Bharat Heavy Electricals Limited (BHEL), Solar Energy Corporation of India (SECI), Sambhar Salts Limited (SSL), Power Grid Corporation of India Limited (POWERGRID), Sutlej JalVidyut Nigam Limited (SJVNL) and Rajasthan Electronics and Instruments Limited (REIL) have signed a Memorandum of Understanding (MoU) on 29th January 2014 for formation of a Joint Venture Company (JVC) for setting up of a Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW in phases at Sambhar in Rajasthan on build, own and operate basis.

The planned first phase implementation of the UMSPP at Sambhar is of 1,000 MW, and the balance 3,000 MW in subsequent phases. This is an initiative of Ministry of Heavy Industries and Public Industries (HI&PE), Ministry of New & Renewable Energy (MNRE) and Ministry of Power (MoP).

The main salient features of the MoU are as follows:

• The proposed equity participation in the JVC is: BHEL - 26%, SECI - 23%, SSL - 16%, POWERGRID - 16%, SJVNL - 16%, and REIL - 3%.
• The JVC will be incorporated in Delhi / National Capital Region (NCR) after finalization of Definitive documents.
• The JVC will be under the supervision of Ministry of HI&PE.
• The JVC shall arrange the entire debt requirement for implementation of various projects.
• The JVC shall apply for connectivity, long term/ medium term/ short term open access as per relevant regulations for evacuation and transfer of power.
• The JVC shall create and construct the requisite infrastructure for implementation of the Project.
• BHEL will supply the photo-voltaic (PV) modules for the first phase (i.e. 1,000 MW) and will also have the right of first refusal for cells and modules for subsequent phases (i.e. 3,000 MW) of the project at Sambhar and other projects, SECI will sign the power purchase agreement (PPA), SSL will provide the land with all clearances, POWERGRID will evacuate power, SJVNL will assist in Project management, and REIL will do the operation & maintenance (O&M).

All modules required during the Phase-I implementation (i.e. 1,000 MW) of the project at Sambhar will be for supply by BHEL on nomination basis subject to the manufacturing capacity of BHEL at that point of time. Besides, BHEL will also have the right of first refusal for supply of solar PV cells and modules during the subsequent phases (i.e. 3,000 MW) of the project, and other projects developed by the JVC.

The project is likely to be completed by 7 to 8 years from the date of all the approvals & clearances.

This information was given today by Minister of State in the Ministry of Heavy Industries and Public Enterprises, Shri Pon. Radhakrishnan in a written reply to Lok Sabha question.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.