MB Power (Madhya Pradesh) Limited (MBPL), a subsidiary of the Hindustan Power group, has achieved financial closure for its utility-scale solar project in Lalitpur, Uttar Pradesh. The project reaches this milestone following the sanctioning of a ₹1,135 crore (approximately $118.6 million) debt facility provided by the Indian Renewable Energy Development Agency (IREDA).
The capital infusion completes the project’s capital stack, supporting ongoing construction and mobilization activities at the site. The project was originally awarded to Fastnote Biofuels Private Limited (FBPL) and subsequently transitioned to MBPL following a corporate merger sanctioned under the fast-track amalgamation provisions of the Companies Act, 2013.
Sole-Lender Debt Facility and Regulatory Context
IREDA serves as the sole lender for the ₹11.35 billion debt facility. This financing arrangement provides the long-term capital necessary for the completion of the project, which ranks among the largest solar initiatives currently under development in Uttar Pradesh.
While the Uttar Pradesh Electricity Regulatory Commission (UPERC) formally adopted the tariff and approved the Power Purchase Agreement (PPA) in an order dated August 25, 2026, the regulator included specific cautions regarding the project’s legal transition. The Commission cautioned the Uttar Pradesh Power Corporation Limited (UPPCL) regarding procedural delays stemming from the merger of FBPL into MBPL. Furthermore, the UPERC ruled that MBPL would not be entitled to seek tariff relief or adjustments for project delays linked to these legal and procedural proceedings.
Technical Specifications and Grid Capacity
The project, situated in the Lalitpur district, is designed to provide high-capacity solar PV generation. Technical specifications distinguish between peak installed capacity and the capacity contracted for grid supply:
- Project Type: Solar PV
- Installed Capacity: 435 MWp (DC)
- Contracted Capacity: 300 MW (AC)
- Location: Talbehat, Lalitpur District, Uttar Pradesh
Contractual Framework and Offtake Agreement
The project is backed by a 25-year long-term PPA with UPPCL. The agreement was finalized at a tariff of ₹2.57 per kWh, a rate discovered through an e-Reverse Auction conducted by UPPCL. The project was formally awarded in April 2025 following this competitive bidding process, intended to support state distribution utilities in meeting their Renewable Purchase Obligations (RPOs).
Construction Progress and Economic Impact
Project commencement began in July 2025, and construction is progressing according to the planned development schedule. Current activities include site development, workforce engagement, and infrastructure mobilization. Hindustan Power has established a dedicated project office in Lalitpur to oversee these local operations and coordinate with stakeholders.
Beyond its contribution to the energy grid, the project is expected to drive significant local economic activity, creating an estimated 5,000 man-days of employment during its implementation phase.
Hindustan Power Chairman Ratul Puri stated that the Lalitpur project represents a “milestone” in the company’s renewable expansion. He emphasized the company’s focus on the “timely execution” of large-scale infrastructure to meet the region’s evolving energy requirements and strengthen long-term energy security.
Strategic Alignment and State Objectives
The Lalitpur project is a critical component of Uttar Pradesh’s broader strategy to reach 22,000 MW of renewable energy capacity by 2026–27. This expansion is aligned with the state’s theme of “Powering a USD 1 Trillion Economy through Renewable Energy.”
On a corporate level, the project supports Hindustan Power’s objective to build a 5 GW clean energy portfolio over the next three years. This roadmap aligns with India’s national target of achieving 500 GW of non-fossil fuel-based capacity by 2030.
Official Sources & References
- TUSCO Limited (Joint Venture of THDC India Ltd. & UPNEDA, Government of Uttar Pradesh)
- Resource: Ultra Mega Renewable Energy Power Parks (UMREPP) – Lalitpur Solar Park
- Details: Official state-level project development portal detailing the 600 MW solar park at Talbehat, Lalitpur, which is acquiring 2,700 acres of leased land across 9 villages and constructing the internal 220 kV power evacuation infrastructure.
- Indian Renewable Energy Development Agency (IREDA)
- Resource: IREDA Interest Rate Matrix & Solar Financing
- Details: Official framework from the state-backed financial institution under the Ministry of New and Renewable Energy (MNRE), which approved the ₹1,135 Crore debt facility for the 435 MWp Lalitpur solar project.
- Uttar Pradesh Electricity Regulatory Commission (UPERC)
- Regulatory Action: Adoption of Tariff for 300 MW Solar Power Procurement
- Details: Official regulatory adoption (under Section 63 of the Electricity Act, 2003) of the competitive tariff of ₹2.57 per kWh for the 25-year Power Purchase Agreement (PPA) between UPPCL and the project developer.
- Small Industries Development Bank of India (SIDBI)
- Resource: SIDBI Green Finance Portal | MSE-GIFT Scheme Circular
- Details: National development financing guidelines and concessional scheme documentation supporting green energy investments and India’s broader net-zero transition.
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