Solel had approached company officials during VGGIS '09

Israel-based leading solar thermal power company, Solel is keen to tie-up with state-based Gujarat State Petroleum Corporation (GSPC) for state government's ambitious project solar thermal power. Representatives of Solel had approached the state government and GSPC officials during Vibrant Gujarat Global Investors' Summit '09 (VGGIS) and shown interest to design the project. The foreign firm has also signed a memorandum of understanding (MoU) with the state government without any commitment for investment.

According to the sources, GSPC may be roped in to execute this mega project for the state government, as it not only has experience in energy sector, but also enough resources to go ahead with the project. Apart from GSPC, other companies being considered by the government include Gujarat Mineral Development Corporation (GMDC), Gujarat Industries Power Company Ltd (GIPCL) and Gujarat State Electricity Corporation (GSEC). Sources close to the development told DNA Money that GSPC was in discussion with other leading solar power equipment manufacturers to make the best deal. Confirming the development, a senior GSPC official said that representatives of Solel had approached the company, though it was too early for the company to take any decision on the issue.

According to the official, the company is now focusing on non-conventional power sector and solar is one of the best options for the purpose. It is worthwhile to mention that the company has announced setting up of two thermal plants of 1,000 megawatt each at the cost of Rs7,000 crore during VGGIS '09.

Apart from solar power in non-conventional energy segment, the company has also planned wind power foray by setting up a 200 MW plant with an investment of Rs1,200 crore. Generation of energy through solar power is far more expensive than conventional coal or gas-based power generation. Israel is not the only country looking for investment in solar power segment in Gujarat.

Companies from Germany, Japan, China, Switzerland and UK have zeroed in on the state through tie-ups with Indian firms. Investor-friendly solar power policy, which was announced by the state government just a week before VGGIS '09, is mainly responsible for foreign firm's interest to invest in the state for such power projects.

Non-conventional energy

GSPC may be roped in to execute solar thermal power project for the state government

GSPC is also in talks with other leading solar power equipment manufacturers

Darshan Mankad / DNA-Daily News & Analysis Source: 3D Syndication