Dubai: UAE-based Mulk Holding has announced an agreement with Bangalore-based Aditya Solar Power Industries to develop a 200 megawatt solar thermal project in the UAE. The holding company said one of its subsidiaries, Mulk Renewable Energy, will supply and install solar thermal power plants for Aditya Solar in a deal valued at 2 billion dirhams ($545 million).

According to the agreement, Mulk Renewable Energy will create a joint venture with Aditya Solar to develop the project. “The project will be implemented in two phases. Phase one will see the execution of a 40 MW plant by 2012 and the balance of 160 MW by 2013,” the company said in a statement. Mulk Renewable Energy will have a 25% equity stake in the first 40 MW. “Major components will be manufactured in the UAE and exported to India for the initial phase and a full-fledged manufacturing facility with 500 MW capacity will be established in India for the next phases,” it said.

Mulk Holding has invested 5 million dirhams in research and development of solar plants and expects 500-million-dirham revenue from the first year of operation of the power plant. The partners signed two joint venture agreements on Tuesday in Sharjah, where this will be the first solar power project. Sanjay Verma, consul general of India was also present at the function. Hamriya Free Zone in Sharjah houses Mulk Holdings, which produces aluminium cladding for buildings.