The Maharashtra cabinet has approved the formation of a joint venture (JV) between Maharashtra State Power Generation Company Limited (Mahagenco) and SJVN Limited to establish 5,000 megawatts (MW) of renewable energy capacity.
According to the agreement, SJVN will have 51 percent equity ownership and Mahagenco will have 49 percent. The projects are limited to pumped storage hydro, solar-wind hybrid facilities, floating solar facilities and green hydrogen-connected projects.
During the first stage, JV is going to develop a total of 735 MW. This stage will include the 125 MW Ghatghar Phase-2 lift hydro project, the 105 MW floating solar project at Irai and 505 MW Nimnawardha floating solar project. This move was approved by the cabinet in a gathering chaired by the Deputy Chief Minister Devendra Fadnavis.
It is collaborating under a Memorandum of Understanding (MoU), which was signed between the two entities in June 2023. Debt financing will be based on the ratio of debt to equity of 70:30 or 80:20 with Mahagenco providing its equity share.
The JV will incorporate a board that will have between six and ten members, where both companies will equally represent the views of their companies. SJVN will also form the chairperson within the first three years and the positions of CEO, CFO and COO will be split between Mahagenco and SJVN.
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