Municipalities fail to pay power bills; Gujarat govt plans solar plants at 194 locations

Gandhinagar: In response to a question asked in the Gujarat Assembly regarding the provision of electricity through solar energy at the pumping station of Bareja Municipality, Minister Rushikesh Patel stated that a proposal was received from Bareja Municipality for setting up solar plants at a total of 13 locations, including 8 tubewells, 4 pumping stations, and 1 STP.

The work of setting up a solar power project with a capacity of 99 kilowatts at a cost of ₹86.21 lakh at the Mahijda Patiya STP of Bareja Municipality is in progress. The project is scheduled to be completed by March 31, 2025. It is estimated that 1,44,000 units of electricity will be generated annually through this project.

Minister Rushikesh Patel further stated that under the Swarnim Jayanti Chief Minister Urban Development Scheme (SJMMSVY), the Gujarat Water Supply and Sewerage Management Board and Gujarat Urban Development Company Ltd. are effectively implementing water supply and underground drainage schemes in the state’s cities. Under the underground drainage scheme, a sewage treatment plant has been planned for wastewater treatment, and a water treatment plant for the treatment of drinking water. Electricity consumption plays a crucial role in the operation of sewage treatment plants, water treatment plants, and pumping stations, resulting in high electricity costs for municipalities. To address this issue, the government has decided to install solar plants at STPs, WTPs, pumping stations, waterworks, and other municipality-owned sites to reduce external power dependency by generating electricity through solar plants.

Gujarat Urban Development Company Ltd. has been appointed as the nodal agency for implementing this project under the “Atmanirbhar Gujarat Mission.” It will oversee the execution of solar power projects under SJMMSVY at STPs, WTPs, pumping stations, and other municipality-owned sites. GUDC has successfully completed 104 solar projects with a total capacity of 13.39 MW at an investment of ₹94.46 crore. These projects are expected to save municipalities an estimated ₹13 crore annually in electricity costs.

Priority Given to Locations with a Capacity of More Than 50 Kilowatts in the First Phase

As part of Gujarat’s initiative to ease the financial burden on municipalities through green energy (solar), the first phase prioritizes locations with power consumption exceeding 50 kilowatts. This ensures a shorter return-on-investment period. The state government plans to set up solar plants with a total capacity of 23.33 megawatts at a cost of ₹163.87 crore across 194 feasible locations.

The solar power project will cover 80 municipalities across Gujarat, categorized as follows: 31 in “A” class, 20 in “B” class, 25 in “K” class, 4 in “D” class

Specific Plans and Future Work

By March 2026, an additional 9.9 MW of solar projects will be installed, saving an estimated ₹9 crore annually. With the full implementation of this project, 80 municipalities are expected to save over ₹23 crore annually.

For municipalities with lower power demand, captive solar power supply will be provided through a centralized system. The government is working on a plan to offset each municipality’s electricity costs through a 150 MW solar plant at Kalamsar, Khambhat Taluka, Anand district. The detailed project report (DPR) for this is currently being prepared. This initiative will make Gujarat’s municipalities self-reliant and contribute significantly to green energy adoption.

Process for Implementation of the Scheme

  • The proposal is submitted to GUDC with the opinion of the Municipal RCM office.

  • GUDC issues a work order to the empaneled DPR consultant for feasibility verification.

  • After the DPR consultant submits the report, a proposal is sent to the government for in-principle approval of the proposed shadow-free feasible location.

  • Upon approval, the agency is appointed through e-tender by GUDC after obtaining administrative and technical clearance.

  • Once appointed, the agency is responsible for repair and maintenance work for five years.

  • As per the tender conditions, the agency must ensure guaranteed power generation; failure to comply will result in penalties.

  • The quality of all work is monitored under the supervision of PMC, TPI, and GUDC PIU to ensure compliance with necessary standards. This process facilitates the smooth and effective implementation of the project.

Reason for Prioritizing Projects Over 50 Kilowatts

Setting up solar plants in locations with low power demand extends the return-on-investment (ROI) period, making the project economically unviable. The government aims to establish centralized solar plants to cater to such municipalities, ensuring they receive benefits proportional to their energy needs. High-capacity solar projects will be more effective and financially beneficial for municipalities in the long run. DeshGujarat