An Indo-US consortium, comprising Hyderabad-based Premier Solar group, and Chicago-headquartered renewable energy major, New Generation Power, is setting up a solar plant in Andhra Pradesh.

The project, estimated to cost $400 million (approx Rs 2,544 crore), will be developed in various phases. New Generation Power (NGP) has bagged projects to implement 315 MW under the Andhra Pradesh Solar Policy, which aims to have 1,000 MW installed capacity. The bid and tender process were recently completed.

In Phase-I, the consortium will install 70 MW in 14 locations in Andhra Pradesh. It has already tied up funds and work shall be completed over the next 12 months.

The consortium has signed a power purchase agreement with the state government for 20 years. Development work for Phase-I has already begun. The Mumbai-based WAREE Group and Premier Solar are the joint EPC contractors for the project.

NGP will hold 74 per cent in the JV and Premier Solar will hold the balance share.