India's National Thermal Power Corporation Limited (NTPC) has inked a memorandum of understanding (MoU) with the Government of Andhra Pradesh state for the development of a 1,000MW solar power park.
For this purpose, the government has allocated 5,500 acres of land to NTPC for the establishment of the solar park in Kadiri, Anantapur district.
NTPC plans to invest about INR70bn ($1.14bn) in the project.
According to the terms of the MoU, NTPC will build 1,000MW solar power projects in a phased way at locations allocated by the state government on a build-own-operate (BOO) basis.
In addition to NTPC, NTPC Vidyut Vyapar Nigam Limited (NVVNL) and Solar Energy Corporation of India Limited (SRCI) will also sign separate agreements with the state government for the construction of solar power parks, each said to produce 1,000MW.
In Kurnool district, NVVNL has been allocated 5,000 acres at Panyam, while SECI, APGenco and Discoms have been given 3,000 acres in the district of Kadapa.
Approximately 50% of the project costs will be borne by the central government, while the rest will come from the state government and other agencies.
State Minister for Information and IT Palle Raghunath Reddy said that the cabinet has given its approval for the land allocations to these firms.
At the ceremony where the MoU was signed, NTPC was also given the papers for the transfer of land for the construction of the 4,000 MW Pudipadaka thermal power project.
This project, which has been delayed for years due to a lack of fuel linkage, is located at Pudipadaka, near Visakhapatnam district.
As part of the 'Power for All' programme, the government intends to supply 100% of the power to the people of the state.