Energy and environment solutions provider, Thermax, has bagged the contract for setting up the first-ever geothermal power plant in the country in Maharashtra, a state government official said.

MoU between the Maharashtra Energy Development Authority and Thermax is likely to be signed shortly in this regard. The proposed plant would come up in the Konkan region of the state.

A senior MEDA official said in Mumbai that "As per the terms of the proposed MoU, Thermax will have to conduct a study to ascertain the availability of high temperature geothermal resources in the area. Once this is done, the company will have to set up at least one 5 MW power plant as a pilot project in the region with a three year time line.”

The government has recently given its go ahead to the signing of the MoU, the official said, adding that the project would be funded by Thermax with the government playing only the role of a facilitator such as providing land etc.

The official added that "However, the company will have to pay royalty to MEDA. As per the terms, it will also have to give 10% of the power generated to the state's power utility Mahadiscom.”

(Sourced from ET)