August 12, 2025: Mumbai is set to launch its first municipal-level hybrid renewable energy project after the Maharashtra government granted final approval for diverting 4.9 hectares of forest land in Mokhada, Palghar. The project will combine hydroelectric and solar power generation at the Middle Vaitarna reservoir, a plan that has been in the works for over five years.
The Brihanmumbai Municipal Corporation (BMC) received the crucial clearance on July 21, paving the way for construction to begin. Once operational, the facility is projected to generate 208 million units of electricity annually, reducing the civic body’s power expenses by approximately Rs 126 million at the Pise-Panjrapur water treatment plant. Under a 25-year agreement, BMC will buy power at a fixed rate of Rs 4.75 per unit, following a Design, Build, Finance, Operate, and Transfer (DBFOT) model, ensuring no capital expenditure for the civic body.
The Middle Vaitarna Dam, completed in 2014, was originally built for water supply but also had potential for power generation. In 2019, the Water Resources Department approved hydropower generation from the site, later expanded into a hybrid model with 20 MW of hydro and 80 MW of floating solar capacity.
In February 2021, a joint venture between Shapoorji Pallonji & Company Pvt Ltd and Mahalaxmi Konal Urja Pvt Ltd—forming Vaitarna Solar Hydro PowerGenco Pvt Ltd—was awarded the contract. Phase one will include a 20 MW hydroelectric plant and a 6.5 MW floating solar setup, with construction expected to take 24 months, excluding monsoon delays.
Electricity will be transmitted to Pise-Panjrapur via a new 13 km line to the Igatpuri grid point. With the Ministry of Environment granting clearances in 2024 and 2025, and the recent forest land diversion nod, the project is ready to move forward, marking a first-of-its-kind renewable energy milestone for any municipal body in India.
Source: Construction World
