A cabinet panel Monday approved the formation of a Special Purpose Vehicle (SPV) for implementing a model solar power project at Neemrana in Rajasthan.

 

 "The Cabinet Committee on Economic Affairs has approved the formation of a SPV for implementation and operation of the model solar power project at Neemrana, Rajasthan as a 100 percent subsidiary of the Delhi Mumbai Industrial Corridor Development  Corporation," an official statement here said.

 

 The government estimates an expenditure of about Rs.35.34 crore on the project, of which the equity component is Rs.13 crore and the debt component is Rs.22.34 crore.

 

 The project, to be implemented in association with the Japanese government, proposes using cutting-edge technology from the Asian country, the statement said. The power generated would be sold to state-run NTPC Vidyut Vyapar Nigam at a tariff of Rs.8.77 per unit, it added.

 

 "The tariff applicable to industrial consumers will be determined at the time of signing the Power Purchase Agreement by the SPV with users," the statement said.

 

 The project demonstrates the integration of solar power with industrial diesel generator sets. The statement added among the benefits it is expected to yield is the "production of green power while reducing carbon dioxide emissions by cutting down diesel consumption."