Adani Group, owned by billionaire Gautam Adani, has signed an agreeement with the Tamil Nadu government for a solar park, which would be among the largest in the world.
Adani would invest Rs 4,536 crore in the project that would involve setting up of a 648 Mega-Watt solar power plant. Construction is expected to begin in August, and completed by March 2016.
Jayalalitha's administration has decided to buy 2,000 MW of solar power in an attempt to diversify from sole reliance on coal-powered plants. That also ties in with Prime Minister Narendra Modi's national solar mission which encourages private players to set up solar plants with a goal to produce 100 Giga-watts of power by 2022. Currently, India's installed grid capacity stands at 3,744 MW. Solar power costs have plunged, making them a viable alternative to coal.
Chief minister J Jayalalithaa was present during the signing of the MoU by the two sides here on Saturday along with Rajesh Adani, the group's managing director.
Tamil Nadu Generation and Distribution Corporation Ltd would purchase power from the project at Rs 7.01 a unit, a government statement said.