The Union petroleum ministry signed an agreement on Sunday with the Madhya Pradesh government, at the global investor summit here, to set up a 2,700 Mw solar energy unit, for an investment of Rs 20,700 crore.

“Indian Oil Corporation and Oil India (both owned by the central government) will set up the plant,” said Dharmendra Prasad, minister of petroleum.

The power generated will be for government refineries. The ministry says it will also set up a power plant to run on agricultural waste. 

The oil companies are opting for solar power as it would be cheaper than conventional energy generation. “It is also our commitment to green energy,” the minister said.

The state government is also working on a large solar power unit in Rewa district. The state has attracted significant investment in the renewable energy sector. In the next five years, there would be an addition of 2,588 Mw in solar and 271 Mw through biomass.

Source: October 23, 2016, Business Standard