State-owned NTPC on Thursday said its arm NTPC Renewable Energy has entered into a power purchase agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) to sell electricity from its 150 MW solar project. The project will sell power at a tariff of Rs 2.20 per kWh, the company said in a statement.
“NTPC Renewable Energy Ltd, a wholly-owned subsidiary of NTPC Ltd, has signed a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Lt (GUVNL) to sell power from its 150 MW solar project,” the statement said.
With this successful bid, the company’s total capacity under TBCB (tariff-based competitive bidding) tenders has reached 1.4 GW. The company has also been allocated land in Rann of Kutch by the Gujarat government for developing a solar park with a capacity of 4,750 MW.
The seven-month-old 100 per cent subsidiary, floated with the purpose of developing renewable energy projects is currently building 6 GW solar capacity in the country.
The strong backing of the parent NTPC Ltd is also reflected in the highest domestic credit rating assigned to the subsidiary by India Ratings (a Fitch group company).
The company is also in the process of receiving Rs 2,100 crore of long-term loans from banks for its under-construction projects.
