Moser Baer (India) Ltd announced that its wholly-owned subsidiary Moser Baer Photo Voltaic (MBPV) has signed an agreement with the government of Rajasthan for setting up a large solar power project in the state.

The estimated generation capacity of the project is 1-5 mega watts, the company said in a statement.

The project will be the largest grid-connected solar farm in India and entail an investment of around USD 25 million (Rs 100 crores) at USD 4.5 million per MW. The MBPV is looking at implementing capacities upto 500 MW by 2010.

The SAARC region has large demand supply imbalances in energy generation capacities, with an increasing need to explore alternate and efficient energy sources and this deal offers a significant potential to Solar Photo Voltaic as an efficient energy option in the region.

Ravi Khanna, CEO of MBPV said "MBPV aims to redefine the paradigms of solar power generation through its world class manufacturing and multi technology capabilities and demonstrate a commercially viable, grid-connected PV energy system in India through this project."

"This project is a pioneering initiative in that direction and we believe that the SAARC region provides huge opportunity for such large sized projects." he added.

Moser Baer is also evaluating various options for setting up large sized solar farms across the SAARC region with strategic tie ups with some of the leading global Solar PV Companies and clean energy funds.

MBPV plans to implement a capacity of 500 MW by 2009-10 through a mix of technologies in the crystalline silicon, concentrator and thin film domain.