The Maharashtra government has provided its consent to three proposals recently, of which two are related to setting up of solar power plants in Mumbai and the third one is a mega housing development project in the city.

In a major revelation, the Maharashtra government has cleared two proposals for setting up multiple solar power plants having total capacity of over 550MW with the help of KFW, which is a German-based Development Bank. In addition, the State has cleared a proposal for redeveloping colonies belonging to Maharashtra Housing and Area Development Authority (MHADA) in Motilal Nagar, which is in suburban Goregaon. 

As per the official release, the first proposal envisages setting up of solar units near existing thermal power plants. The German Bank will provide nearly Rs 588 crore as assistance for this project. The Mahagenco power firm of the State government will further raise around Rs 158 crore through share capital and other sources. According to sources, KFW has initially funded a similar project in the Dhule District of Maharashtra.

For the second project related to setting up of solar plants, KFW will provide approximately Rs 1,564 crore at an annual interest of 0.05 percent. The government will raise around Rs 364 crore from other sources for the project, which involves setting up solar plants with total installed capacity of 390 MW.