GSECL Commissions 210 MW Solar Project In Gujarat, Seeks ₹1.76/kWh Tariff Approval From GERC

A 210 MW grid-connected solar power project developed by Gujarat State Electricity Corporation Limited (GSECL) has been successfully completed and is now commercially operational at Babarzar in Gujarat’s Jamnagar district. The project has been developed on government wasteland as part of the Gujarat government’s initiative to promote renewable energy while making productive use of unused land resources.

The solar project is expected to provide affordable, clean electricity to consumers by utilizing land located near the existing transmission infrastructure of Gujarat Electricity Transmission Corporation Limited (GETCO). Under the state government’s policy, wasteland situated close to GETCO substations was allocated to public sector undertakings on a token lease of ₹1 per hectare for 30 years. GSECL was assigned the responsibility of developing 2,500 MW of solar power capacity under the scheme, supported by a 50 percent capital subsidy from the Government of Gujarat.

For the Jamnagar solar project, GSECL conducted an open competitive e-tendering process followed by a reverse auction to select the engineering, procurement, and construction (EPC) contractor. Larsen & Toubro Ltd. emerged as the successful bidder and was awarded the contract for project execution.

The total capital cost of the project has been finalized at ₹1,211.43 crore. This amount includes the base contract value, statutory variations related to Goods and Services Tax (GST), Basic Customs Duty (BCD), and other pre-operative expenses. Since the Gujarat government is providing a 50 percent capital grant, the effective project cost considered for tariff determination stands at ₹605.71 crore. GSECL has financed its share of the investment entirely through internal resources without taking any external debt.

The project was commissioned in phases during the first quarter of 2025. An initial capacity of 19.09 MW became operational on January 8, 2025. This was followed by the commissioning of 89.09 MW on February 8, 2025. The remaining 101.82 MW was commissioned on March 10, 2025, taking the total operational capacity to 210 MW.

Following the commissioning, GSECL signed a 25-year Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for the sale of electricity generated from the project.

GSECL has now approached the Gujarat Electricity Regulatory Commission (GERC) seeking approval of a project-specific tariff. The company has proposed a fixed levelized tariff of ₹1.76 per kWh for the project’s 25-year life. It has also requested approval for full tariff payment on electricity generated during the early commissioning phases, citing the low-cost and state-supported nature of the project.