NHPC Limited has concluded the capacity auction for the Jalaun Solar Park in Uttar Pradesh, awarding a total capacity of 1.2 GW (1200 MW). The auction resulted in a winning tariff of ₹2.73 per kWh, with the capacity split equally between two primary state-owned entities: Coal India Limited (CIL) and NLC India Renewables. The projects were awarded following a domestic competitive bidding process conducted by NHPC on behalf of its joint venture development arm.
Capacity Allocation and Auction Results
The 1.2 GW capacity was allocated between the two winning bidders to be situated at the Jalaun Solar Park in the Orai region of the Jalaun district, Uttar Pradesh. Records indicate that the capacity was divided into two equal tranches of 600 MW.
| Entity | Allocated Capacity (MW) |
| Coal India Limited (CIL) | 600 |
| NLC India Renewables (NIRL) | 600 |
Financial Obligations and Project Economics
According to regulatory filings, the financial commitment for the 600 MW portion awarded to Coal India Limited is estimated at ₹2,831.11 crore (approximately US$296 million). This specific project is structured as two distinct blocks of 300 MW each.
The economic structure of the project includes:
- Fixed Tariff: Electricity supply is set at a fixed rate of ₹2.73 per kilowatt-hour (kWh) for the duration of the contract.
- Infrastructure Investment: While CIL’s specific project investment is ₹2,831.11 crore, the broader Jalaun Solar Park infrastructure is being established with an estimated baseline investment of ₹796.96 crore by the park developer.
- Upfront Obligations: CIL is required to pay upfront Solar Park Development fees and submit all necessary compliance documentation specified in the Letter of Award (LoA) prior to the formal signing of the Power Purchase Agreement (PPA).
Implementation Timelines and Infrastructure
The execution phase for the solar facilities is governed by a strict regulatory schedule and supported by dedicated evacuation infrastructure.
- Execution Timeline: The project must be fully executed within 18 months following the formal signing of the PPA.
- Projected Generation: Once commissioned, the Jalaun Ultra Mega Renewable Energy Power Park is projected to generate approximately 2,400 million units (MUs) annually.
- Power Evacuation: To support the park, NHPC has issued a tender for power evacuation infrastructure, including the construction of three 33/400 kV pooling substations. This contract is valued at approximately ₹379.25 crore.
Governance and Project Development Entities
The Jalaun Solar Park is developed and managed through a specific joint venture and corporate structure involving national and state agencies.
- Bundelkhand Saur Urja Limited (BSUL): The dedicated developer of the park.
- NHPC Limited: The majority equity holder in BSUL, maintaining an 88.82% stake.
- UPNEDA: The Uttar Pradesh New and Renewable Energy Development Agency, which holds the remaining 11.18% equity in BSUL.
- CIL Strategy and Governance: CIL’s management confirmed that the contract was conducted at “arm’s length” and is not a related-party transaction. This award is part of CIL’s broader diversification strategy, following a recent 875 MW solar award to Sterling and Wilson for a project in Rajasthan.
Quick Facts
- Project Name: Jalaun Ultra Mega Renewable Energy Power Park
- Location: Orai, Jalaun District, Uttar Pradesh
- Winning Tariff: ₹2.73 per kWh (Fixed)
- Total Investment (CIL Portion): ₹2,831.11 crore
- Baseline Park Investment (BSUL): ₹796.96 crore
- Completion Deadline: 18 months from the signing of the PPA
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