August 11, 2025: The Maharashtra government has authorised the diversion of 4.9 hectares of forest land in Mokhada, Palghar, paving the way for Mumbai’s first municipal hybrid renewable energy project to commence. The scheme, located at the Middle Vaitarna reservoir, will combine hydroelectric and floating solar generation to produce large-scale clean energy.
The Brihanmumbai Municipal Corporation (BMC) received the final go-ahead on July 21, concluding over five years of procedural delays. The project is expected to generate around 208 million units of electricity annually, leading to estimated operational savings of Rs 12.6 crore at the Pise-Panjrapur water treatment facility. A 25-year agreement has set a fixed purchase rate of Rs 4.75 per unit, and the development is being implemented on a Design, Build, Finance, Operate and Transfer basis, ensuring no capital expenditure for the civic body.
The Middle Vaitarna Dam, completed in 2014, was originally designed for both water supply and potential power generation, featuring a combined outflow channel for future hydroelectric use. Approval for hydropower utilisation was granted by the state’s Water Resources Department in 2019. Following expert recommendations, the BMC opted for a hybrid model comprising 20 MW hydro capacity and 80 MW floating solar.
A joint venture between Shapoorji Pallonji & Company Pvt Ltd and Mahalaxmi Konal Urja Pvt Ltd won the contract in February 2021. Through a special purpose vehicle, Vaitarna Solar Hydro PowerGenco Pvt Ltd, the first phase will deliver a 20 MW hydro plant and a 6.5 MW (AC) floating solar array. Completion is targeted within 24 months, excluding monsoon delays.
Environmental clearance was secured in two stages — October 2024 and April 2025 — with the July 2025 forest diversion approval marking the final milestone. As India’s first large-scale municipal hybrid energy project, it is expected to cut conventional power use, reduce costs, and inspire similar ventures nationwide.
Source: Mumbai Live
