The joint venture company will have equity participation of 26 per cent from BHEL, 23 per cent from SECI (Solar Energy Corporation of India), 16 per cent from SSL (Sambhar Salt Ltd), 16 per cent from Power Grid, 16 per cent from SJVNL (Satluj Jal Vidyut Nigam) and 3 per cent from REIL (Rajasthan Electronics & Instruments Ltd).
Conceived in August last year, it took five months for the project to come to the MoU stage.
The memorandum of understanding (MOU) signed today will need to get the approval of the Cabinet, minister of heavy industries and public enterprises Praful Patel said, as quoted by PTI.
The department of heavy industry would set up a special purpose vehicle for executing this project, which will require an investment of Rs 7,500 crore in the first phase.
The project will come up on 19,000 acre of surplus land available with SSL in Sambhar, Rajasthan. The equipment will be supplied by BHEL, power evacuation by Power Grid, sale of electricity by SECI, operation & maintenance by REIL and project management by SJVNL.
The project will be developed in different phases in 7 to 8 years. The first phase of 1,000 MW is planned to be set up in about three years. The other 3,000 MW will be set up in subsequent phases.
The Solar PV (photo-voltaic) power plant will use PV modules based on crystalline silicon technology. With an estimated life of 25 years, the 4,000 MW of the solar plant is expected to supply 6,400 million units of energy per year and consequently help to reduce carbon dioxide emissions by over 4 million tonnes per year, said a government release.