GSECL 210 MW Solar Plant Commissioned in Jamnagar: Rs 1.76/kWh Tariff Sought from GERC

Key Takeaways

• Developer: Gujarat State Electricity Corporation Limited (GSECL)
• Capacity: 210 MW grid-connected solar PV
• Location: Babarzar, Jamnagar district, Gujarat
• EPC Contractor: Larsen and Toubro Limited (L&T)
• Total project cost: Rs 1,211.43 crore
• Government capital grant: 50% of project cost (Rs 605.71 crore effective cost)
• Tariff sought: Rs 1.76 per kWh (fixed levelised, 25-year tenure)
• Offtaker: Gujarat Urja Vikas Nigam Limited (GUVNL) — 25-year PPA
• Land: Government wasteland at Rs 1 per hectare for 30 years

What Happened?

On June 19, 2026, Gujarat State Electricity Corporation Limited (GSECL) filed a petition with the Gujarat Electricity Regulatory Commission (GERC) seeking tariff approval for its newly commissioned 210 MW solar power project at Babarzar in Jamnagar district, Gujarat.

The project — one of the largest single-site solar installations completed by a Gujarat state government entity — has been fully commissioned and is now commercially operational. GSECL has entered into a 25-year Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) and is seeking GERC's approval for a fixed levelised tariff of Rs 1.76 per kWh for the project's 25-year life.

This project is notable on several counts: it uses government wasteland (often deemed difficult to develop), it received a 50% state capital grant, L&T was selected as EPC contractor through competitive bidding, and the proposed tariff of Rs 1.76/kWh is among the lowest project-specific solar tariffs ever sought from an Indian regulatory commission for a state-owned solar project — reflecting the combination of a large capital grant, low land cost, and large project scale.

Project Details

Location and Land

The 210 MW solar plant is located at Babarzar in Jamnagar district — a coastal district in Gujarat's Saurashtra region with strong solar irradiance and proximity to industrial clusters including the massive Jamnagar refinery complex (home to Reliance Industries' refineries).

Land was allocated on a token lease of Rs 1 per hectare for 30 years from government wasteland near existing transmission infrastructure. The near-zero land cost is a significant contributor to the project's economics and the unusually low proposed tariff of Rs 1.76/kWh.

Using government wasteland for large-scale solar — a policy championed by both Gujarat and Rajasthan governments — allows the state to deploy solar rapidly without the delays and costs of private land acquisition.

EPC Contractor: Larsen and Toubro

Larsen and Toubro Limited (L&T) was selected as the EPC contractor through competitive bidding and reverse auction. L&T is one of India's largest engineering, procurement, and construction companies and one of a handful of contractors capable of executing a 210 MW single-site solar project within the required timelines and quality standards.

Phased Commissioning Timeline

The project was commissioned in three phases in early 2025:

The three-phase commissioning — progressively bringing larger tranches online — is standard practice for large utility-scale solar projects, allowing GUVNL to begin receiving power (and GSECL to begin generating revenue) ahead of full completion.

Financial Structure

Project Cost

The Rs 1,211.43 crore total cost works out to approximately Rs 5.77 crore per MW — higher than the prevailing open-market EPC cost of Rs 3.5–4.5 crore/MW for utility-scale projects. This premium likely reflects the project's timeline (construction in 2023–24 when module costs were higher), location-specific logistics costs, and inclusion of GST and BCD variations.

The Gujarat government's 50% capital grant effectively halves the net project cost for tariff calculation purposes, enabling the Rs 1.76/kWh levelised tariff despite the higher gross cost.

Proposed Tariff: Rs 1.76/kWh

GSECL has petitioned GERC for a fixed levelised tariff of Rs 1.76 per kWh for the 25-year PPA tenure. "Fixed levelised" means the tariff stays constant over the full 25-year period — unlike escalating tariffs that adjust annually for inflation. A fixed low tariff is favourable for GUVNL (predictable, low-cost solar procurement) but puts all cost-inflation risk on GSECL.

The Rs 1.76/kWh proposed tariff is remarkable in context:

• It is below even the record-low Rs 1.99/kWh tariff discovered in a competitive auction for Gujarat's 500 MW tender
• It is enabled by the 50% capital grant, near-zero land cost, and GSECL's public sector financing terms
• GERC must approve this tariff through a regulatory order, which was pending at the time of this writing

What This Means for Gujarat's Solar Ecosystem

For the Gujarat solar market, the commissioning of GSECL's 210 MW Jamnagar plant is a significant milestone. It adds to Gujarat's rapidly growing solar capacity and demonstrates the Gujarat government's willingness to support solar development with capital grants and land allocation.

For EPC companies, this project highlights L&T's continued dominance in large utility-scale EPC contracts for state government clients. The competitive bidding and reverse auction process used to select L&T sets a benchmark for future GSECL and GUVNL EPC procurements.

For GUVNL's procurement portfolio, this 210 MW addition from GSECL — at a proposed tariff of Rs 1.76/kWh — significantly improves GUVNL's average solar power purchase cost if GERC approves the tariff. Combined with the 625 MW procured from Welspun and NLC at Rs 2.34/kWh, GUVNL is assembling one of the most cost-competitive solar portfolios of any Indian state utility.

For industrial solar buyers in Gujarat, these developments reinforce the state's solar leadership — strong policy support, active procurement, and a mature EPC ecosystem. Industrial buyers exploring open-access or captive solar in Gujarat can benefit from this competitive EPC market, where large contractors like L&T, Tata Power Solar, and others compete on large government contracts and bring their experience to private sector projects as well.

For more on industrial solar options in Gujarat, see our guide on solar EPC for industrial projects in Gujarat.

Regulatory Context: GERC Approval Process

GSECL's petition to GERC for tariff approval is a standard regulatory step for state government solar projects with capital grants. The process involves:

1. Petition filing: GSECL submits a tariff petition with capital cost details, grant structure, and proposed tariff calculation
2. GERC review: The commission reviews cost justifications, normative parameters, and grant accounting
3. Public hearing: Interested parties (typically consumer groups, industrial associations) may file objections or comments
4. GERC order: The commission issues a tariff approval order, which may approve the petitioned tariff or set a different tariff based on its analysis

The CERC (Central Electricity Regulatory Commission) and various state commissions have precedents for approving project-specific tariffs for state government solar projects with capital grants. GSECL's petition will follow these established procedures.

About GSECL

Gujarat State Electricity Corporation Limited (GSECL) is the power generation arm of the Gujarat government, operating thermal, hydro, and increasingly, solar power plants across the state. GSECL has also sought GERC tariff approval for a separate 45 MW solar project at Bhavnagar and a 14 MW project in Morbi in recent months — indicating an active solar development programme alongside its traditional thermal generation business. The company's partnerships with GUVNL for 25-year PPAs create a reliable state-to-state renewable energy framework.

Frequently Asked Questions

What is the significance of the Rs 1.76/kWh tariff for a state government solar project?

Rs 1.76/kWh is among the lowest solar tariffs ever proposed to an Indian electricity regulator for a commissioned project. It is made possible by a combination of factors: Gujarat government's 50% capital grant (halving GSECL's effective cost), near-zero land lease (Rs 1/hectare on government wasteland), GSECL's public sector financing terms, and the large project scale (210 MW). If approved by GERC, this tariff would be a landmark in India's state-owned solar economics.

Who built the GSECL 210 MW solar plant?

Larsen and Toubro Limited (L&T) was selected as the EPC contractor through competitive bidding and reverse auction. L&T delivered the project in three phases between January and March 2025.

Where is the plant located?

The 210 MW solar plant is at Babarzar in Jamnagar district, Gujarat. The land is government wasteland leased at Rs 1 per hectare for 30 years — near existing transmission infrastructure to facilitate grid connectivity.

Has GERC approved the tariff?

As of June 2026, GSECL's tariff petition is pending before GERC. The commission has not yet issued its approval order. GERC's review will involve scrutiny of capital costs, grant accounting, and normative project parameters before a tariff is approved.

Why did the project cost Rs 1,211 crore if the current EPC market rate is Rs 3.5–4.5 crore/MW?

At Rs 5.77 crore/MW, the total cost is above current market rates. The project was likely constructed during 2023–24, when module prices were higher than in 2025–26. Additionally, BCD on imported equipment, GST, site-specific logistics costs for the Jamnagar location, and pre-operative expenses (financing costs during construction) contribute to the higher all-in cost.

Sources

• GSECL Commissions 210 MW Solar Project In Gujarat, Seeks Rs 1.76/kWh Tariff Approval From GERC — SolarQuarter (June 19, 2026)
• GUVNL Announces Results of 625 MWp Solar Power Auction — Renewable Watch
• GSECL Seeks GERC Tariff Approval For 45 MW Bhavnagar Solar Plant — Construction World