NLC India Ltd, a public sector mining and power generation corporation, is planning to build a 1,000 MW solar power plant in Assam in collaboration with the state government.
During the discussions, the Assam government suggested that NLC India build a 1,000 MW solar power plant in the state as a joint venture with the Assam Power Distribution Company, which is owned by the state government.
Rakesh Kumar, Chairman and Managing Director of NLC India, told sources on Saturday that the solar joint venture would include a 51 percent share for NLC. Assam will purchase the plant’s power at a rate that would yield a 12 percent return on investment.
“We’ve been told that they (Assam) have weighed the benefits and drawbacks of building solar plants in other parts of the country and have determined that, despite the lower capacity utilization factor, it would be better to build the plant in Assam,” Kumar said.
NLC India expands its renewable energy
NLC India, which specializes in thermal power, has recently expanded into renewable energy. It was the first public sector corporation to hold 1,000 MW of renewable energy capacity, predominantly solar, a few years ago. The company now has 1,421 MW of renewable energy capacity, with 51 MW of wind and the remainder being solar.