Bharat Heavy Electricals (BHEL), Solar Energy Corporation of India (SECI), Sambhar Salts (SSL), Power Grid Corporation of India (POWERGRID), Sutlej JalVidyut Nigam (SJVNL) and Rajasthan Electronics and Instruments (REIL) have signed a memorandum of understanding (MoU) for formation of a joint venture company for setting up of a Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW in phases at Sambhar in Rajasthan on build, own and operate basis.
The proposed equity participation in the JVC is BHEL -26%, SECI - 23%, SSL - 16%, POWERGRID - 16%, SJVNL - 16%, and REIL - 3%. The JVC shall create and construct the requisite infrastructure for implementation of the project.
BHEL will supply the photo-voltaic (PV) modules for the first phase (i.e. 1,000 MW) and will also have the right of first refusal for cells and modules for subsequent phases (i.e. 3,000 MW) of the project at Sambhar and other projects, SECI will sign the power purchase agreement (PPA), SSL will provide the land with all clearances, Powergrid will evacuate power, SJVNL will assist in project management, and REIL will do the operation & maintenance (O&M).
Shares of the company declined Rs 3.75, or 1.58%, to settle at Rs 234.20. The total volume of shares traded was 404,604 at the BSE (Monday).