Pune Municipal Corp to Form SPV for Erecting Solar Power Plant

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Pune Municipal Corporation (PMC) has given nod to form a special purpose vehicle (SPV) to generate solar power and purchase it from the company. PMC along with the Centre’s Energy Efficiency Service Limited (EESL) plan to generate the solar power and utilise it. The plant is planned to come up in Marathwada or Vidharba region on government land.

PMC standing committee chairman Hemant Rasne said, “It is decided that SPV would invest twenty percentage and 80 percentage would be raised through loan for erecting solar plant. In the twenty percentage share, PMC would bear 26 percentage and SPV would invest 74 percentage share. It is expected that the total solar project cost would be ₹250 crore. PMC would need to give Rs12.48 crore as investment. Even it is mandatory to PMC that it would need to purchase at least 51 percentage energy generated through the plant.”

The total cost of the project is divided into 80% loan and 20% equity. Out of 20% shares, at least 26% will be borne by NMC and 74% will be borne by CESL Company. The total cost of the proposed 50 kW solar power project will be approximately two hundred to two hundred and fifty crore rupees. Out of which 10 crore 40 lakhs to 12 crore 48 lakhs will be given by NMC as share capital. The remaining amount is CESL; It will also be raised through loans. Pune Municipal Corporation will have to use 51% of the electricity generated.

A 50 MW project will be set up on the vacant land available by SPV Company. This land will be made available by CESL. SPV will cover design, erection, testing, etc. The project includes maintenance for 20 years. At present, electricity is purchased at the rate of Rs. 7, 23 paise per unit, incurring all expenses. SPV will make electricity available in the open market at a rate of Rs 3.40 paise. Considering the other charges, the electricity will be available at 76 paise per unit less than the current rate. “Under the agreement with SVP, we will get electricity at a lower rate than the current rates, which will last for 20 years,” said Rasne.

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