According to data supplied by the Ministry of New and Renewable Energy, the estimated capital cost of setting up a solar power plant is in the range of Rs 16 crore to Rs 20 crore and the cost of electricity generation comes to around Rs 12 to Rs 15 per unit depending upon the technology. Buch added: “These issues will be dealt with in our Solar Power Policy, which we will announce soon.”

Another major proposal under consideration by the Gujarat government is the 5,000 mw solar power project to be set up by the Clinton Foundation.

Buch said: “The representatives of the Clinton Foundation recently met Chief Minister Narendra Modi and briefed him about the 5,000 mw plant. It will entail an investment of Rs 20,000 crore. But again, the discussions are at a very nascent stage.”

The 5,000 MW project, being called the ‘integrated solar city,’ aims to reduce the cost of solar power drastically by economy of scales and by building integrated backward linkages.

The Energy and Resources Institute (TERI), New Delhi is doing a feasibility study of the project and will submit its report in a month’s time to the Gujarat government. Besides issues related to the project cost, TERI will also suggest the most suitable site for the project.