MAHAGENCO receives approvals for 577 MW of solar projects

The state-run Maharashtra State Power Generation Company (MAHAGENCO) has received approval from the state cabinet to install two solar power projects, one with a total capacity of 187 MW and the other with a capacity of 390 MW.  Further, fund raising has also been approved for the two projects. The project financing agreement for the 187 MW solar project was authorised and KFW-Bank in Germany will provide a loan of up to Rs 5.88 billion. The project will be set up on an engineering, procurement and construction basis. The cabinet also approved the project’s funding of Rs 1.58 billion from internal sources and loans from external institutions.

Similarly, a loan of Rs 15.64 billion from KFW Bank in Germany was granted for the 390 MW solar power projects, with an interest rate of 0.05 percent per annum. The loan will be repaid within a maximum of 12 years. In addition to the loan, Rs 3.64 billion in capital has been approved, which will also be raised from internal sources or through financial institution loans.

In May 2021, MAHAGENCO had also conducted an auction for the development of 250 MW of grid-connected solar PV projects at the Dondaicha Solar Park in Dhule, Maharashtra. As a result, TP Saurya won the entire capacity at a quoted tariff of Rs 2.51 per kWh. The tender had a tariff ceiling of Rs 2.83 per kWh.

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