A memorandum of understanding (MoU) has been signed by India’s Maharashtra state with eight private sector players to set up 12,500 MW of new generation capacity over the next five years at a cost more than Rs 500 billion ($10.4 billion).
The private players include Essar, GMR, Jindal, Reliance, Spectrum, the Tatas and the Ispat group.
Power purchase agreements will be made through a competitive bidding process, but a series of tax breaks and benefits is also on offer if the IPPs sell at least half the project output within the state.
The state currently faces a power deficit of 3 GW and by 2010 this is estimated to reach 7,700 MW.
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