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 Integrated mining-cum-power generation company NLC India Ltd on Wednesday said its wholly-owned subsidiary NLC India Green Energy Ltd (NIGEL) has won the 600 MW solar power project in the GSECL Khavda Solar Park tender, floated by Gujarat Urja Vikas Nigam Ltd (GUVNL), through a competitive bidding process.

According to NLC India, a navratna public sector company under the administrative control of the Coal Ministry, it had floated NIGEL for renewable power projects.

In line with the policy of developing renewable energy projects under its subsidiary, NLC India has vested the project development with NIGEL.

As its first initiative, NIGEL signed a power purchase agreement (PPA) with GUVNL for the proposed 600 MW solar power project at Khavda Solar Park in Gujarat's Bhuj district.

The entire power from the project will be procured by the GUVNL with the PPA tariff for the electricity from the project at Rs. 2.705/kWhr. The annual generation of electricity is set at 1,577.88 MU (million unit), with a cumulative electricity generation of 39.447 BU (billion unit) in its lifetime. The project is set to offset approximately 35.5 million metric tons of carbon dioxide emissions during its entire life.

According to NIGEL Chairman Prasanna Kumar Motupalli, the project has the benefit of being established in a solar park with all readily available necessary infrastructure and with payment security for the power sold.

By securing additional capacity in the greenshoe option, the project economics have been improved because of scales, he added.

The proposed 600 MW Solar Power Project in Khavda Solar Park will be the single largest Solar project developed by NLC India as on date.

Last month, Motupalli, who is also the Chairman and Managing Director of NLC India, said the company will be raising about Rs 5,000 crore by transferring about 1.4 GW of renewable power capacity to its renewable energy subsidiary.