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Govt approves cost of BHEL’s Bhandara project

Thursday, 08 May 2014
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BHEL has received approval from the Maharashtra Cabinet to escalate the cost of its solar photovoltaic cells manufacturing unit, at Sakoli, in Bhandara district from Rs 2,000 crore to Rs 2,731 crore.

The project was first sanctioned in January 2012, by the high-powered committee on condition that it would utilise the capital expenditure in five years, repay 20 per cent of the VAT in 15 years, electricity duty waiver for 15 years, and complete stamp duty waiver. After that the state government has asked for more concession for the project. However, the high powered committee refused to grant any more funds for the project.

In August 2013, BHEL increased its project cost from Rs 2,000 crore to Rs 2,450 crore and sought more concessions. The high powered committee on 3 May 2014, refused the concession of equity share but said the state government will given only financial assistance from the national clean energy fund.

The project will manufacture 240 MW solar photovoltaic cells and 100 MW photovoltaic modules. The company has already received 480 acre from Maharashtra Industrial Development Corporation (MIDC).


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