The Maharashtra State Power Generation Company Limited (MAHAGENCO) has awarded ₹1132 crore worth of contracts for multiple solar PV power projects across Maharashtra, aiming to bolster the state's renewable energy sector under the MSKVY 2.0 scheme. These projects focus on Crystalline Ground-mounted solar PV power plants and are designed to facilitate agricultural feeder solarization across various districts. The total contract value, inclusive of GST, stands at ₹1132.25 crore, and the contracts will be executed within 9 months to 1 year from the date of land allotment.

The awarded contracts include:

EPC Contract for the design, engineering, supply, erection, testing, and commissioning of Crystalline Ground-mounted solar PV power plants. This includes 3 years of operation and maintenance on an EPC basis at 33/11 kV across multiple districts, with a total value of ₹763.16 crore.

Another EPC Contract for design, engineering, supply (except PV modules), unloading of PV modules at the site, erection, and commissioning of Crystalline Ground-mounted solar PV technology for agriculture feeder solarization. This contract also covers 3 years of operation and maintenance on an EPC basis, valued at ₹369.08 crore.

These contracts represent MAHAGENCO's strategic move to boost solar energy production under the MSKVY 2.0 scheme, a significant initiative aimed at agricultural feeder solarization. This initiative aligns with the government's broader goal of promoting renewable energy projects to reduce dependency on traditional energy sources.

Project Scope and Conditions

Under the first contract, MAHAGENCO has outlined the engineering, procurement, and construction (EPC) for ground-mounted solar PV plants across various districts of Maharashtra. These plants will operate at 33/11 kV, a configuration selected to support agricultural feeder solarization, ensuring the power is distributed effectively to farming communities. The project is expected to play a critical role in reducing the energy burden on farmers while promoting sustainable power generation.

In the second contract, MAHAGENCO has opted for a slightly different model, where the PV modules will be supplied by MAHAGENCO itself, and the contractors will handle their installation, erection, and commissioning. This method ensures that MAHAGENCO maintains control over the quality and specification of the PV modules while outsourcing the remaining project elements to specialized EPC contractors.

The scope of both contracts covers 3 years of operation and maintenance to ensure the smooth functioning of these solar plants. This reflects the long-term commitment of MAHAGENCO to ensuring these projects remain sustainable and efficient, further reducing the carbon footprint of the state's energy sector.

Domestic vs. International Entity

Both contracts have been awarded by a domestic entity, reflecting the growing emphasis on local renewable energy development in India. By relying on domestic companies for the execution of these projects, MAHAGENCO ensures that the investment stays within the country, contributing to the local economy and job creation.

No Promoter Group Involvement

MAHAGENCO has confirmed that neither the promoter nor the promoter group has any direct or indirect involvement with the awarded contractors, ensuring the contracts do not fall under the Related Party Transactions category. This demonstrates transparency and adherence to ethical business practices in the awarding of such significant contracts.

Timeframe and Impact

The contracts are expected to be completed within 9 months to 1 year, depending on the land allotment process. The swift execution of these projects will provide a significant boost to Maharashtra's solar capacity, contributing to India's overall renewable energy targets.

Upon completion, these projects will not only provide a reliable source of clean energy but also significantly reduce the power costs for the agricultural sector. By focusing on agricultural feeder solarization, MAHAGENCO aims to help farmers access affordable electricity while supporting the country's renewable energy objectives.

The projects are part of a broader trend towards decentralized solar energy production, which is expected to become a major pillar of India's future energy landscape.

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Financial Overview

The total project cost is ₹1132.25 crore, with the first contract valued at ₹763.16 crore and the second contract at ₹369.08 crore. These figures include GST, which adds to the overall investment made by MAHAGENCO. The contracts are structured on an EPC basis, where payments are made according to the progress of the work completed, ensuring accountability and efficiency in project execution.

Conclusion

MAHAGENCO's commitment to expanding solar energy infrastructure in Maharashtra under the MSKVY 2.0 scheme represents a significant step forward for India's renewable energy ambitions. With contracts valued at over ₹1132 crore, these projects will not only contribute to sustainable development but also provide long-term benefits to the agricultural sector by reducing electricity costs.

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This move by MAHAGENCO showcases the state's drive toward becoming a leader in renewable energy, paving the way for future advancements in solar power technology across India.