Mumbai: Energy and environment solutions provider, Thermax, has bagged the contract for setting up the country's first-ever geothermal power plant in Maharashtra, said a state government official.
A Memorandum of Understanding (MoU) between the Maharashtra Energy Development Authority (MEDA) and Thermax is likely to be signed shortly in this regard, the official said.
"As per the terms of the proposed MoU, the company (Thermax) will have to conduct a study to ascertain the vailability of high temperature geothermal resources in the area," a senior MEDA official told PTI here on condition of anonymity
He added, "Once this is done, the company will have to set up at least one 5 MW power plant as a pilot project in the region with a three-year time-line."
The proposed plant would come up in the Konkan region of the state.
The Government has recently given go-ahead to the signing of the MoU, the official said, adding that the project would be funded by Thermax with the Government playing only the role of a facilitator such as in providing land.
"However, the company will have to pay royalty to MEDA. As per the terms, it will also have to give 10 percent of the power generated to the state's power utility Mahadiscom," the official said.
In June 2009, MEDA had called for Expressions of Interest for the project. Thermax and Tata Power were shortlisted for setting up geothermal power plants in the state.
"We will soon submit our proposal (to the state government) for signing another MoU with Tata Power for setting up the second geothermal power plant in the state," he said.
Thermax has signed an agreement with an Iceland-based company for a 80:20 joint venture to conduct a feasibility study as well as to set up the power plant, according to the company Managing Director M S Unnikrishnan.
"It will cost around Rs 10-crore to generate one MW of thermal power," Unnikrishnan said.