The Maharashtra government has approved the diversion of 4.90 hectares of reserved forest land for the development of a 100 MW hybrid renewable energy project at the Middle Vaitarna Dam in Palghar district.

Combining 20 MW of hydroelectric power with 80 MW of floating solar capacity, the project is expected to generate around 208 million units of electricity annually. With this clearance, construction can now commence.

Completed in 2014, the Middle Vaitarna Dam in Kochale village stands 102.4 metres high and stretches 565 metres in length, supplying 455 million litres of water daily—about 11 per cent of Mumbai’s total requirement. With a total storage capacity of 193 billion litres, the dam was originally constructed with a dedicated outlet pipeline to enable both water supply and future hydropower generation.

In 2019, the State Water Resources Department approved the Brihanmumbai Municipal Corporation’s (BMC) plan for a hydroelectric facility at the site. Consultants later proposed integrating floating solar power, adopting a Design, Build, Finance, Operate and Transfer (DBFOT) model.

Following a tender process in February 2021, the contract was awarded to a joint venture between Shapoorji Pallonji & Company and Mahalaxmi Konal Urja Pvt Ltd. The partners established Vaitarna Solar Hydro Power Genco Pvt Ltd (VSHPPL) as the project’s special purpose vehicle.

Under a 25-year agreement, BMC will purchase electricity at a fixed rate of Rs 4.75 per unit without incurring any capital expenditure. The first phase will include a 20 MW hydroelectric plant and a 6.5 MW (AC) floating solar installation, expected to produce about 78.13 million units annually, saving approximately Rs 12.6 million each year in power costs at the Pise-Panjrapur water treatment facility.

Electricity will be transmitted through the Maharashtra State Electricity Transmission Company Ltd’s (MSETCL) grid under the Open Access Policy, supported by a new 13 km transmission line linking Middle Vaitarna Dam to Igatpuri in Nashik district.

The project timeline is set at 31 months, including a 7-month financial closure period and a 24-month construction phase, excluding the monsoon season.