Mumbai: The state cabinet on Wednesday authorized two solar power projects to be implemented by Maharashtra State Power Generation Corporation Ltd (Mahagenco). The cabinet also approved fundraising for the projects – one of 187 megawatts (MW) and another of 390 MW.
“Cabinet approval will give solar energy projects a boost. With the return of climate change, it is necessary to reduce dependence on non-renewable energy sources, ”said an official at the State Secretariat.
The project finance agreement for the 187 MW solar project has been approved and a loan of up to Rs 588.21 crore will be taken from KFW-Bank in Germany. The agreement for these projects was approved on behalf of the state government, in coordination with the central government and with the agreement of the finance department.
The project will be implemented on an Engineering-Purchasing and Construction basis. The cabinet also authorized the raising of 158.29 crore rupees for the project through internal sources and loans from financial institutions.
Likewise, for the 390 MW solar power projects, a loan of Rs 1,564.22 crore at 0.05% interest per annum has been approved from KFW Bank, Germany.
An agreement was also given for the repayment of the loan within a maximum period of 12 years.
In addition to the loan, around Rs 364.18 crore in the form of capital was also allowed to be raised from internal sources or through loans from financial institutions.