Welspun Group and Moser Baer India Ltd. (MBI) are among four companies that have signed agreements to build solar power projects in India's central Madhya Pradesh state.
Welspun and Alpha Infraprop Pvt. won by auction contracts to build 105 megawatts and 20 megawatts respectively, Rajesh Mehta, chief general manager of Madhya Pradesh Power Management Co..
The contracts commit the companies to sell sun-based power to MP Power Management Co. for 25 years at a rate of 7,900 rupees ($140) a megawatt-hour for Alpha Infraprop and 8,050 rupees a megawatt-hour for Welspun.
Welspun, Moser Baer, and Acme Tele Power Ltd. (ATPL) have separately signed agreements with the state government to build 25 megawatts each of capacity, Mehta said. The government has agreed to pay those projects a tariff of 8,050 a megawatt-hour for their power, Mehta said.
The projects have until July 2013 to complete the first 25 megawatts plus another 1 1/2 months for each additional 25 megawatts of capacity, he said.