The country’s largest power generation company National Thermal Power Corporation (NTPC) on Saturday inked an MoU with Gujarat Power Corporation Ltd (GPCL) for setting up 500 MW renewable energy power projects in the State.

“The MoU inked between the State-owned GPCL and NTPC envisages power projects in the renewable energy sector with capacity of 500 MW which will require investment of around Rs 4,000 crore,” Union Minister of State for Power Bharatsinh Solanki, who was present at the signing of MoU said.

NTPC has also shown interest in setting up a 1000 MW coal-based power project near Khambhat in Gujarat and the State government has responded positively to the offer, Mr. Solanki said.

On the MoU, Mr. Solanki said this was an attempt to encourage renewable energy sector in the state.

As per the agreement, NTPC will fund the projects while GPCL will assist in identifying suitable location, clearances from the State government agencies and power evacuation.

Of 500 MW projects, a 50 MW solar power project will be set up by NTPC in the State in either Kutch or Banaskantha district where Rs 500 crore investment will be made while a 250 MW wind far project will be put up in Kutch.