Godawari Power and Ispat Ltd has announced that the Board of Directors of the Company at its meeting held on December 29th 2010, have decided to set-up the 50 MW Solar Thermal Power Project awarded to the Company under Jawaharlal Nehru National Solar Mission Scheme through its 100% subsidiary Company M/s. Godawari Green Energy Ltd.

The Board also approved the investment in the equity share capital of the Godawari Green Energy Ltd. as and when required for setting up the project.

The cost of Project cost is estimated to be INR 700 crores approx which will be financed through mix of Debt Equity Capital. The Company shall achieve financial closure within a period of 180 days.

The GGEL shall execute a Long Term Power Purchase Agreement with NTPC Vidyut Vyapar Nigam Ltd a nodal agency appointed under the said JNNSM Scheme for a period of 25 years and the Power will be supplied at a fixed tariff of INR 12.20 per KW.

(Sourced from Equity Bulls)