Punjab State Power Corporation Limited (PSPCL) has signed a Letter of Intent (LoI) with SJVN Green Energy Limited (SGEL) for procurement of 1,200 MW solar power capacity. This 1,200 MW solar power capacity will be developed by SGEL at an estimated cost of Rs. 7,000 crore on Build, Own and Operate (BOO) basis.
SGEL will develop 200 MW out of the aforementioned total solar power capacity in Punjab while the remaining 1,000 MW will be developed outside Punjab. PSPCL will procure the power generated in Punjab at a quoted tariff rate of Rs. 2.75 per unit while the rest will be procured at a tariff rate of Rs. 2.53 per unit. Power Purchase Agreement will be signed between SGEL and PSPCL for a period of 25 years.
This project will be completed in a period of 18 months from the date of signing the PPA and expected to be completed by December 2024.