05/07/2015 7:58 AM IST | Updated 15/07/2016 8:25 AM IST

Adani Group To Build 2,000 MW Solar Power Plant In Tamil Nadu

FILE - This April 20, 2011 file photo officials with Arizona-based First Solar and Public Service Company of New Mexico gather after the dedication of the utility's new 2-megawatt photovoltaic solar array in Albuquerque, N.M. The New Mexico House of Representatives on Thursday, March 12, 2105, narrowly approved a measure reducing the amount of renewable energy sources utilities would have to tap to provide electricity for their customers by 2020. (AP Photo/Susan Montoya Bryan,File)

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.

READ: Solar Power Will Become Cheaper Than Coal By 2017

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.

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