The first proposal, involving 187 MW capacity, envisages setting up solar units near the sites of existing thermal power plants, an official release issued after the state cabinet meeting said. These solar power plants will be funded by Germany’s state development bank KfW which will provide Rs 588.21 crore, while Mahagenco power firm of the state government will raise Rs 158.29 crore through share capital as well as other sources, it said. KFW has already funded a similar project in Dhule district of Maharashtra.
The second proposal, also involving Mahagenco, was cleared by the cabinet to raise Rs 1,564.22 crore from KfW at an annual interest rate of 0.05 per cent, the release said. The state power utility has to repay the loan in 12 years, while the government will raise Rs 364.18 crore from its own sources, it said.
The second proposal involves setting up solar plants with total installed capacity of 390 MW. These units will come up at independent sites and also near existing thermal power facilities, the release said.
The cabinet also cleared a proposal of redeveloping MHADA (Maharashtra Housing & Area Development Authority) colonies in Motilal Nagar in suburban Goregaon where 5,300 houses are located at the present.
Post-redevelopment, there will be additional 33,000 flats in the colonies, the release said. Though the MHADA has to complete the project as per an order by the Bombay High Court dated October 17, 2013, the housing authority has decided to appoint an agency to carry out the work due to its inability to handle such a huge project, said the statement.