GSECL Seeks Tariff Approval For 35 MW Lakadiya Solar Project In Gujarat

Gujarat State Electricity Corporation Limited has filed a petition with the Gujarat Electricity Regulatory Commission to determine the tariff for its 35 MW solar power project located in Lakadiya in Kutchh district. The project is part of a broader effort by the state government to use wasteland near existing transmission infrastructure to generate affordable renewable energy for consumers.

The solar plant has been developed on around 54.39 hectares of land under a 2019 government scheme. This scheme supports renewable energy projects by offering land on a nominal lease and providing a 50 percent capital subsidy from the state government. The aim is to reduce project costs and encourage faster development of clean energy capacity in Gujarat.

For the execution of the project, GSECL selected Madhav Infra Projects Ltd as the main contractor through a competitive bidding process followed by a reverse auction. The total capital cost of the project has been finalized at ₹226.22 crore. This amount includes the cost of equipment supply, construction work, and supervision charges.

The project was commissioned in phases and achieved its full capacity of 35.07 MW on February 18, 2025. After completion, GSECL signed a power purchase agreement with Gujarat Urja Vikas Nigam Limited on June 19, 2025. As per the agreement, GUVNL will procure electricity from the plant for a period of 25 years at a tariff that will be approved by the regulatory commission.

In its petition, GSECL has proposed key financial parameters for tariff determination. These include a debt-equity ratio of 70:30 and a return on equity of 14 percent. The company has also detailed operation and maintenance expenses for the project. Importantly, the tariff proposal considers the 50 percent capital subsidy received from the state government, ensuring that the benefit of this support is passed on to consumers through lower electricity prices.

The tariff determination process is guided by the provisions of the Electricity Act 2003, which requires state regulators to balance commercial viability with consumer interests. Through this petition, GSECL aims to recover its project costs in a structured and reasonable manner while maintaining efficiency. The commission will now examine the technical and financial details submitted by GSECL before finalizing the tariff. The outcome is expected to support Gujarat’s renewable energy goals while ensuring fair pricing for electricity consumers.