The Government of Tamil Nadu in India has signed agreements with 16 companies that would invest INR90bn ($1.3bn) to produce 1,500MW of new solarpower.
Under the first phase, Tamil Nadu Electricity and Generation Distribution (TANGEDCO) signed memorandum of understanding (MoU) agreements with NLC India, Raasi Green Earth, Narbheram Vishram Kolkata, and NVR Energy. These were selected through floated tenders sought by TANGEDCO, reported Press Trust of India.
NLC India is expected to generate 709MW of energy, while Bengaluru-based Raasi Green Earth Energy is set to produce 100MW of electricity, reported Business Standard.
Under the MoUs, Tamil Nadu will procure solar energy at a cost of INR3.47 ($0.053) per unit from the four companies once they start producing electricity.
The deals are expected to help the state achieve its goal of generating 5,000MW of power by 2021.
TANGEDCO expects to sign MoUs with the rest of 12 companies within this month.