National Hydroelectric Power Corporation (NHPC) signed a pact with Green Energy Development Corporation of Odisha Ltd to form a joint venture (JV) to set up a 500-megawatt (MW) floating solar power project in Odisha. The joint venture (JV) would invest around Rs 2,000 crore in the first phase to build 300 MW floating solar projects that will generate 600 million units (MU) per year.
“On 4th January 2022, NHPC Limited, India’s premier hydropower company, signed a Promoters Agreement with Green Energy Development Corporation of Odisha Ltd (GEDCOL), a leading State PSU in the renewable energy sector in Odisha for the ‘Development of 500 MW Floating Solar Projects on different water bodies in Odisha'” according to a statement from the power ministry.
According to the release, the agreement was signed on January 4, 2022, by AK Singh, CMD of NHPC, and Bishnupada Sethi, Chairman, OHPC & CMD, GEDCOL, in the presence of Dibya Shankar Mishra, Minister of State (Energy), Government of Odisha. NHPC and GEDCOL had previously signed a memorandum of understanding (MoU) on July 20, 2020.
The Promoters Agreement commits NHPC and GEDCOL to form a joint venture to build 500 MW floating solar power projects in Odisha, as well as additional projects as defined by the JVC from time to time by the Government of India directives.
The planned joint venture business will have a 74:26 equity participation split between NHPC and GEDCOL. It would have a Rs 500 crore approved share capital and a Rs 10 crore paid-up share capital, according to the company.
In the first stage, 300 megawatts of floating solar capacity will be built in the Rengali HE project’s reservoir. According to the announcement, the project will be implemented under the Ultra Mega Renewable Energy Power Park (UMREPP), Mode 8 of the Solar Park Scheme.
The first stage of the project will cost more than Rs 2,000 crore and generate roughly 600 megawatts of energy per year, according to the statement. It is the first of its sort in Odisha and the country’s largest to date. According to the government, the project will assist the state reach its renewable energy generation objective and purchase obligation, as well as provide investment and job possibilities.
In a regulatory filing on Wednesday, NHPC indicated that the JV will have at least four directors and no more than 15, with a ratio in proportion to equity participation (i.e. 74: 26 rounded to 3:1) for NHPC and GEDCOL, respectively, subject to each party appointing at least one director. It had said that if there are a minimum of four directors, three will be from the NHPC side and one from the GEDCOL side. The chief executive officer (CEO) and functional leaders of the company will be officers below the board of directors. For effective management, it had stated that its CEO and the chief financial officer will be from NHPC.
Resource: PV-Magzine
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