BHEL to Partner with Hindustan Salts in 2,500-Megawatt Solar Plant in Rajasthan

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Two Indian state-controlled companies, Hindustan Salts Limited (HSL) and Bharat Heavy Electrical (BSE:BHEL.BO) (BHEL) (New Delhi, India), are proposing a partnership to develop what would become Asia's largest solar power project. A feasibility study is due to start on the proposed 2,500-megawatt (MW) integrated plant, which is to be constructed on 15,000 acres of unutilized salt pan land in Rajasthan.

HSL manufactures common salt and BHEL, India's largest power equipment company, manufactures photovoltaic (PV) modules at its plant in Bangalore. BHEL produces both mono- and poly-silicon-based cells and modules from wafers that are procured mostly from Japan. The Ministry of Heavy Industries reports that the two companies have obtained key input, land and equipment. BHEL would be in a position to set up the plant in fast-track time.

Under the existing rules of the renewable energy certificate (REC) mechanism, an entity that sets up a solar (or other renewable-based) plant is eligible for tradable renewable energy certificates. A 1-MW solar PV plant could yield between 1.5 million to 1.8 million units annually.

The project proposal is being led by the ministry, which has administrative control over both state-owned enterprises. The ministry also envisages the development of another 23,000 acres of land in Gujarat, harnessing solar and wind power capacity, which would be an additional 4,000 MW and generate revenue for both companies.

A 5-MW solar PV plant, based on crystalline silicon technology, needs about 25 acres; HSL has 57,000 acres in Rajasthan. The company has asked project engineers IL&FS (BSE:532907) (Hyderabad, India) and BHEL to conduct the feasibility study.

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