IDFC signs deal to build thermal, solar plants in Gujarat

The infrastructure development arm of a leading finance company in the infrastructure space today announced that it had signed two MoUs with Gujarat government to build a thermal and solar power plant.

The infrastructure development arm of a leading finance company in the infrastructure space on Tuesday announced that it had signed two memorandums of understanding (MoUs) with Gujarat state government to build a thermal and solar power plant.

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A statement from Infrastructure Development Finance Company Ltd. (IDFC) said that IDFC Projects - a 100 per cent subsidiary - had signed two MoUs with the Gujarat government on Tuesday at the Vibrant Gujarat Summit - an investor summit being organised by the state government, in IDFC Projects will build a 1,600 mega watt (MW) thermal power plant at Sarkhadi in Gujarat and a 10 MW solar plant at a suitable location. The thermal plant capacity would be increased to 3,200 MW subsequently.

The approximate cost of building the 1,600 MW thermal power plant will be between Rs.80 billion - Rs.85 billion (Rs.8,000 crore-Rs.8,500 crore).

While Gujarat State Electricity Corporation (GSECL) and Bharat Heavy Electricals Ltd. will hold 26 per cent each under the agreement, IDFC projects and associates will hold 48 per cent along with management control.