M Ramesh |
It will hold majority stake in the joint venture with the Assam Power Distribution Company
NLC India Ltd, the public sector company which is into mining and power generation, is likely to put up a 1,000 MW solar power plant in Assam, jointly with the Assam government.
NLC India has been in touch with the State government in connection with the sale of power from the Ghatampur thermal power project, which is being put up by a joint venture of NLC India and the Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd in Kanpur district.
During the discussions, the Assam government mooted the idea that NLC India might also put up a 1,000 MW solar power plant in the State, as a joint venture with the Assam government owned Assam Power Distribution Company.
NLC India’s Chairman and Managing Director, Rakesh Kumar told Business ine on Saturday that NLC India would hold 51 per cent stake in the solar joint venture. The electricity from the plant would be bought by Assam at a tariff that would give a 12 per cent return on equity.
“We are given to understand that they (Assam) have examined the pros and cons of setting up solar plants in other regions of the country and decided that it would be better to set up the plant in Assam, despite the lower capacity utilisation factor,” Kumar told Business Line.
NLC India, a thermal power company, recently diversified into renewable energy. A few years ago, it became the first public sector company to own 1,000 MW of renewable energy capacity, though mostly solar. Today, the company has 1,421 MW of renewable energy capacity, 51 MW of which is wind and the rest solar.