Hindustan Salts Limited tenders 5 GW of solar in Rajasthan and Gujarat

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Hindustan Salts Limited, a State-owned salt producer, has invited Expression of Interest to develop an aggregate 5 GW of solar power capacity on its disused land in the Indian States of Rajasthan and Gujarat

Out of 5 GW, 4 GW will come upon the land of its arm Sambhar Salts Limited in the Jaipur district of Rajasthan. Sambhar Salts Limited has 58,000 acres of land in the Sambhar Lake Area (Rajasthan), out of which 38,400 acres is lake area and the remaining is plain land. As such, currently, the company is utilizing a fraction of land, say 2,500 acres, for salt production. Thus, after taking into account the expansion of salt production area plans, a large area can be utilized for solar power generation.

Another 1 GW solar power project is required to be developed on the land of Hindustan Salts Limited in the Surendranagar district of Gujarat. Hindustan Salts has 23,595 acres of land at Kharaghoda. Only part of this land is used for salt production and allied products. The remaining land can be used for solar power generation.

The developers are required to develop the project on the land of HSL and further operate and generate the revenue from the sale of generated power. All the expenditures for the installation of the project, seeking various clearances, power purchase agreements, etc shall be in the developer’s scope. The developer shall pay to Hindustan Salts a fixed annual rental for the land provided on a per-acre basis. These rates shall remain constant for two years and shall be enhanced thereafter every year at the rate of 5% per annum of the previous year.

Interested parties are required to submit an Expression of Interest to execute the solar projects, which may include details like the proposed solar power plant capacity and accordingly land required for the same, estimated cost of the project, proposed time period for execution of the project, and plan for the execution of the project with capacity and time frame, and details of the power purchase agreement for the sale of generated power and revenue generation thereon, among other requirements.

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