Gujarat State Electricity Corporation Limited (GSECL) has filed a petition before the Gujarat Electricity Regulatory Commission (GERC) seeking approval for the tariff of its newly commissioned 10 MW solar photovoltaic power project at Manjal in Kutchh district. The petition has been submitted under the provisions of the Electricity Act, 2003, and represents another step in Gujarat’s continued efforts to expand renewable energy capacity across the state, particularly by utilizing government wastelands for solar power development.
The Manjal solar project is part of a broader initiative by the Government of Gujarat aimed at setting up solar power plants near existing substations of Gujarat Energy Transmission Corporation (GETCO). This approach helps reduce transmission infrastructure requirements and associated costs while enabling faster grid connectivity. The initiative was launched under a government scheme introduced in 2019, under which GSECL was assigned the responsibility to develop solar projects with financial support from the state government.
The total capital cost of the 10 MW solar plant has been finalized at ₹63.46 crores. According to the details submitted in the petition, half of the project cost, amounting to ₹31.73 crores, has been provided by the Government of Gujarat as a capital subsidy. The remaining ₹31.73 crores has been financed through GSECL’s internal accruals. The company has clarified that no external borrowing or loans were taken to fund the project.
The solar plant has been developed on approximately 35.45 hectares of land at Manjal in Kutchh district. The engineering, procurement, and construction (EPC) work for the project was carried out by M/s Kosol Energie Pvt Ltd, which is also responsible for the operation and maintenance of the plant for the first five years of operation. The project achieved its commercial operation date on February 13, 2025, and is expected to operate for a period of 25 years.
GSECL has also informed the Commission that a Power Purchase Agreement (PPA) was signed with Gujarat Urja Vikas Nigam Limited (GUVNL) on June 19, 2025. As per the terms of the agreement, the tariff for the project is to be determined on a cost-plus basis by the regulatory commission.
Based on the financial parameters specified in the GERC Multi-Year Tariff (MYT) Regulations, GSECL has proposed a levelized tariff of ₹2.66 per kilowatt-hour for the entire 25-year life of the project. The tariff calculation has considered factors such as a normative debt-equity ratio of 70:30, a return on equity of 14 percent, depreciation, and interest on working capital.
The petition also includes operation and maintenance expenses estimated at ₹22.14 crores for the first five years of operation. Through this petition, GSECL has requested the Commission to approve the capital cost of the project and determine the tariff at ₹2.66 per kWh, stating that it would ensure cost recovery while delivering affordable renewable power to electricity consumers in Gujarat.
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