Mumbai: Maharashtra State Power Generation Co. Ltd (Mahagenco) has tied up with Welspun Energy Ltd, a company which works in the renewable power segment, to set up a 50MW solar power plant at Baramati in Pune district.

The contract has been signed on a revenue sharing basis.

Under the agreement with Mahagenco, Welspun will invest 60% of project cost and will be entitled to get 62% share in revenue. Mahagenco will invest the rest and take the remainder of the revenue.

Mahagenco’s managing director Ashish Sharma said, “Welspun was chosen as a partner through international bidding. And apart from installing the plant, Welspun will be also responsible for maintenance of plant over next 25 years."

The agreement for revenue sharing has been signed assuming the plant load factor will be 19% and Welspun will have to compensate for any loss of revenue to Mahagenco due to a fall in power generation, Sharma added.