In line with the government’s clean climate initiative, state-owned companies BHEL and HPCL have decided to foray into solar power generation. The two PSUs are working out the modalities to form a new joint venture company with equal equity participation for setting up a series of solar photo-voltaic based power plants across the country.

Stating that the modalities of the JV arrangement are being worked out, a senior HPCL official said the plan is to begin with the development of a 25 MW capacity solar power project costing Rs 350 crore by 2012. The two companies plan to scale up their solar power capacity plans to 100 MW by 2015 and to 1000 MW by 2020, the official said.

“The board of HPCL deliberated this proposal at its last board meeting. Some more details for the company’s foray into non-fossil fuels with BHEL have been sought by the board,” he added. Considering a debt-equity ratio of 70:30, the equity participation by both HPCL and BHEL will come to Rs 52.50 crore each.