The Maharashtra government has approved Mumbai’s first municipal-level hybrid renewable energy initiative, granting final clearance for the diversion of 4.9 hectares of forest land in Mokhada, Palghar, to develop a hydroelectric and solar power project at the Middle Vaitarna reservoir.

The Brihanmumbai Municipal Corporation (BMC) received the crucial approval on 21 July — the last of several pending permissions — allowing construction to commence on a project that has been planned for over five years. Once operational, it is expected to generate around 208 million units of electricity annually, reducing the civic body’s annual power bill by about Rs 126 million at the Pise-Panjrapur water treatment plant.

Under a 25-year agreement, BMC will purchase power from the contractor at a fixed rate of Rs 4.75 per unit. The scheme will follow a Design, Build, Finance, Operate and Transfer (DBFOT) model, ensuring no capital expenditure for the civic body.

The Middle Vaitarna Dam, completed in 2014 with a height of 102.4 metres and length of 565 metres, was designed for both water supply and potential power generation. In 2019, BMC received permission from the state’s Water Resources Department to generate hydropower from the reservoir. Consultants later proposed a hybrid model with 20 MW of hydroelectric capacity and 80 MW of floating solar capacity.

Following a competitive tender, the contract was awarded in February 2021 to a joint venture between Shapoorji Pallonji & Company Pvt Ltd and Mahalaxmi Konal Urja Pvt Ltd, which formed Vaitarna Solar Hydro PowerGenco Pvt Ltd (VSHPPL) to execute the project. The first phase will comprise a 20 MW hydroelectric plant and a 6.5 MW (AC) floating solar installation. Construction is expected to take 24 months, excluding the monsoon season.

Electricity from Middle Vaitarna will be transmitted to the Pise-Panjrapur facility via the Maharashtra State Electricity Transmission Company Ltd (MSETCL) network, with a new 13 km line connecting the dam to the nearest grid point at Igatpuri, Nashik.

The Ministry of Environment, Forest and Climate Change (MoEF&CC) granted Stage 1 environmental clearance in October 2024 and Stage 2 in April 2025. The state government’s recent approval for forest land diversion was the final step, enabling work to proceed.

The project represents the first large-scale hybrid renewable power generation venture by a municipal body in India. By combining hydropower with floating solar technology, BMC aims to cut reliance on conventional electricity, lower operational costs, and enhance Mumbai’s renewable energy capacity. If successful, it could serve as a model for other cities to integrate green energy into existing water infrastructure.