September, 2010

Maharashtra Power and Renewable Energy sector

Maharashtra the Power house

Maharashtra Profile
Percentage in Maharashtra
Economic

Maharashtra:
GSDP growth rate Industry growth rate Literacy Rate Urbanization 0 20 40 42 60 80 100 6.4 76.9 13.5

Highest State Domestic Product Highest aggregate bank deposits and gross credits Highest contribution to Indias corporate tax collections (61%) Most urbanized State

Social

Percentage of Maharashtra in India

Wine Industrial Auto & Auto Components Bio Tech Software Export Exports Economic Industrial output Employment GSDP contribution Social Geographical Area Population 0 Page 2 19 15.7 13 9.4 9.4 20 40 60 80 100 20 27 33 32 97

Maharashtra

has

20.6

of

Investment Of India ( Highest )

Source: RBI Report on Investment 2008-09 published in Sept. 2009

With 9.4% of Indias population, Maharashtra has 19% of industrial production.

* Maharashtras GSDP contribution to Indias GDP is at current prices

Source: Socio-Economic Review , Maharashtra 2009-10; Annual Survey of Industries 2007-08

Power and Renewable Energy

Maharashtra Profile
Road
Road Connectivity
Total Length of National Highway (in km): Total Length of State Highway (in km): Total Length of Major District Roads(in km): Total Length of Other District and Village Roads (in km):

India
70,548 1,31,899 4,67,763 26,50,000

Maharashtra
4,367 33,933 49,621 1,49,747

- Maharashtra has the largest (7%) road network in the country. - 97 % of the villages are well connected with all weather roads in the state.
Source: Socio-Economic Review, Maharashtra 2009-10; www.nhai.org, August, 2010

Railway

Railway Connectivity
Total Length of Railway network (in km):

India
64,000

Maharashtra
5,983

- The state encompasses 2 major railway zones; the Central and Western - 9.2 % of total railway network in the country - The railway route length per 1,000 sq. km of geographical area is 19.42 km in the State as against 19.70 km in the country. (as on 31st March, 2009)
Source: Socio-Economic Review, Maharashtra 2009-10

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Power and Renewable Energy

Maharashtra Profile
Airport
Airport Connectivity
Total No. of Airport: Total No. of International Airports: Total No. of Domestic Airports:

India
449 17 114

Maharashtra
22 3 4

-Maharashtra is well connected to major cities in the USA, EU, Asia and other Indian metropolitan cities. -The state has the highest number of airports in the country (6%).
Source: MIDC, AAI and MADC

Port

Port Connectivity
Coast-line (in km): No. of Major Ports: No. of Minor and intermediate Ports: Container traffic (in TEU million):

India
7,517 13 200 6.30

Maharashtra
720 2 48 3.83

- JNPT in Maharashtra is India's largest container port (61%). - 21% of the total cargo traffic of the major ports in India is handled by the state (3rd highest)
Source: Socio-Economic Review, Maharashtra 2009-10

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Power and Renewable Energy

Maharashtra Profile
Power
Installed Capacity:

Power Facilities
Electricity Generation Capacity (in MkWh):

India
72,38,000 1,59,648

Maharashtra
83,008 17,266

- Maharashtra has the largest installed electricity generation capacity

Source: Socio-Economic Review, Maharashtra 2009-10

IT/ ITeS

IT/ITeS Facilities
Total no. of Industrial Training Institutes: Total no. of Industrial Training Centres: Total seating capacity:

India
2,133 5,906 11,15,628

Maharashtra
388 297 1,21,744

-Out of 1396 Government ITIS being developed in India in PPP mode, 266 are in Maharashtra - Indias 18% of ITIs is in the state with a 20 % seating capacity
Source: dget.nic.in, April 2010

SEZ

Special Economic Zones

Notified SEZs: Approved SEZs:

India
363 735

Maharashtra
58 144

- Highest number of approved SEZ in the country are in Maharashtra

Source: http://www.sezindia.nic.in/index.asp & Maharashtra Industries Department, September 2010

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Power and Renewable Energy

Source: dget.nic.in, April 2010

Global Power and Renewable Energy Sector

Global Power and Renewable Energy Sector

Global Power and Renewable Energy Sector Industry
The global energy consumption has grown at a CAGR of 2.5% since 1999, reaching 11 billion tons of oil equivalent in 2008 Since 2000, the global renewable energy capacity has increased by approximately five times to reach 146,073 MW in 2008. This growth has primarily been driven by the wind and solar power segment. During the period 200008, wind power and solar photovoltaic (PV) capacity grew at a CAGR of 27% and 44%, respectively. The US now has the largest wind power capacity (25.2 GW, 20.7% of the total world capacity), followed by Germany (23.9 GW, 19.6% share). Solar power, another key RE focus area globally, recorded a 69% y-o-y growth in generating capacity in 2008. Spain (2.7 GW) and Germany (1.5 GW), which together accounted for more than 75% of the growth.
Source - BP Statistical Review of World Energy, June 2009 :

Global Renewable Energy Country Attractiveness Indices May 2009

Ranking Country
1 2 3 4 5 US Germany China India Spain

All Wind Renewable Index

70 66 63 62 61 71 67 67 63 62

Solar Index
73 65 46 61 67

Bio / other
63 64 54 56 54

Source :Ernst and Young analysis

The leading global players in the renewable energy sector are Suzlon Energy, Solaris, SolFocus Inc., Stion Corporation, BP Solar, Kyushu Electric Power Co. Inc and Brookfield Renewable Power Inc, Enercon GMBH, Roaring 40s, Nordex Black Durre

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Power and Renewable Energy

India Power and Renewable Energy Sector

Indias position on a global canvas

India Power Sector

India ranks 6th in the world in terms of total electricity generation Total installed capacity of electricity generation has expanded from 105,045.96 Mega Watt (MW) (2001 02) to 159,398.49 MW (as on March 31, 2010). Thermal power plants account for 102,453.98 MW, followed by hydro power plants with a capacity of 36,863.40 MW. Renewable energy sources provide 15,521.11 MW of power and the remaining 4,560 MW comes from nuclear energy. Within the thermal power plants, coal-based power plants have an installed capacity of 84,198.38 MW, gas-based have a capacity of 17,055.85 MW and dieselbased have a capacity of 1,199.75 MW.

18,668.82, 14%

India's Source-wise Installed Capacity (MV)

State Sector 47,285.99, 34% 70,946.82, 52% Central Sector Private Sector

Indias Sector-wise Installed Capacity (MV)

3% 10% Thermal Hydro (Renewable) Nuclear 64% RES** (MNRE)

23%

Renewable Energy Sources(RES) include SHP, BG, BP, U&I and Wind Energy SHP= Small Hydro Project ,BG= Biomas Gasfier ,BP= Biomass Power, U & I=Urban & Industrial Waste Power, RES=Renewable Energy Sources

Source: CEA As on 30-06-2010

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Power and Renewable Energy

Indias position on a global canvas

India Renewable Energy Sector

India has emerged as the fifth-largest producer of wind energy in the world, with a current installed wind capacity of 10,243 MW The solar PV manufacturing capacities has been put India on the world map as the seventh largest producer of solar PV cell worldwide, with an installed manufacturing capacity of 110MW in 2008. Renewable energy sources include small hydro projects (2,604.92 MW), biomass gasifier and biomass power (2,167.73 MW), urban and industrial water power and solar (101.01 MW) and wind energy (10,647.45 MW). A total of 34 projects were commissioned during 2009-10 with a total capacity of 9,585 MW. These include 31 thermal power plants with a total capacity of 9,106 MW, one hydro power plant with a capacity 39 MW, and two nuclear power plants with a combined capacity of 440 MW. 18 power plants were commissioned in 2008-09 with a total capacity of 3,453.7 MW which included 10 thermal power plants with a capacity of 2,484.7 MW and eight hydro power plants with a capacity of 969 MW.

Source : Ernst and Young analysis and Ministry of Power

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Power and Renewable Energy

Indian power sector: a key contributor to the economic growth

India Power Sector Growth Potential

The Eleventh Five Year Plan envisaged an additional capacity of 78,700 MW of which 19.9 per cent was hydro, 75.8 per cent thermal and the rest was nuclear. As of December 31, 2009, 43,282 MW was under construction. Public sector power major National Thermal Power Corporation (NTPC) is planning to scale up its capacity from the present 30,000 MW to 75,000 MW by 2017. India has launched its ambitious solar energy mission which aims to generate 20,000 MW of solar power by 2022.

India Power Sector Investment Scenario

The power sector has attracted foreign direct investment (FDI) worth USD 1.34 billion during April to February 2009-10. The cumulative FDI received by the power sector between April 2000 and February 2010 was USD 4.53 billion.

Source : Economic Survey 2009-10 and Department of Industrial Policy and Promotion

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Power and Renewable Energy

Maharashtra Power and Renewable Energy Sector

Maharashtra Power and Renewable Energy Sector

Maharashtra Power Sector

Installed Capcity in MV
20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 17,266 14,053 14,326 13,153 13,180 13,189 13,369 13,838

The state has highest installed capacity and generation of electricity in the country. The installed capacity of electricity in Maharashtra increased from a meagre capacity of 13,153 MW in 2001-02 to 17,266 MW by 31st March, 2009. Generation of Electricity: 83,008 Million Kilo Watt Hours (MKWH) (including renewable sources). (31st March, 2009) Consumption of Electricity: 72,994 MKWH (2008-09) was, higher by 4.5 per cent over previous year.

2001 02

2002 03

2003 04

2004 05

2005 06

2006 07

2007 08

2008 09

Sector-wise Installed Capacity (MV) As on 31st March, 2010

908, 5% 2577, 15% 393, 3% 1772, 10% 2791, 16% 8825, 51%

Thermal Hydro Natural Gas Neuclear Renewable Captive

Source : Economic Survey, Maharashtra 2009-10

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Power and Renewable Energy

Strong Foot hold of Private Sectors

Type of source State Sector Central Sector Private Sector Total Camparing Installed Capacity in the state with the conutry (MV) As on 31st March, 2010
80,000.00 70946.82 70,000.00 60,000.00 50,000.00 40,000.00 4,254, 19% 5,169, 23% 13,012, 58% 30,000.00 State Sector Central Sector Private Sector 10,000.00 0.00 State Sector India Central Sector Maharastra
Source : Economic Survey, Maharashtra 2009-10

India

Maharashtra 13,012 5,169 4,254 22,435

% 58 23 19

70,946.82 51.82 47,285.99 34.54 18,668.82 13.64 136,901.63

Maharshtra's Source-wise Installed Capacity (MV) As on 31st March, 2010

47285.99

20,000.00 13,012 5,169

18668.82

4,254

Major private sector player such as Tata Power, Reliance Energy and Ratnagiri Gas and Power Pvt. Ltd. have their presence in the state.

Private Sector

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Power and Renewable Energy

Maharashtra Power and Renewable Energy Sector

Maharashtra Renewable Energy Sector The state has been a leader in the adoption of renewable energy sources for power supply.

Source :http://www.mahaurja.com

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Power and Renewable Energy

Maharashtra Power and Renewable Energy Sector

According to estimates, 7,852 MW of renewable energy potential exists in the state and the total renewable. Energy generated in the state during 2007- 08 was 2,584 MkWh. Maharashtra Energy Development Agency (MEDA) in Dhule district develops Asias single-largest wind farm with an installed capacity of 545 MW. The state also ranks second in India for its installed wind capacity. Private wind power projects of nearly 1,820 MW have been installed in the state at 17 sites until October 2008. Maharashtra climate supports the Solar energy generation. The State has a capacity to generate 1.5 Million units/MW/year through solar photovoltaic systems & up to 2.5 Million units/MW/ year through solar thermal systems. The state has opened up the energy sector to renewable power alternatives, which reflects its commitment towards sustainable and eco-friendly power generation.

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Power and Renewable Energy

Maharashtra Power and Renewable Energy Sector Industrial Scenario

Maharashtra Power and Renewable Energy Sector Industry
Nandurbar

Nagpur

Gondia

Dhule

Amravati

Nashik
Thane

Ozhar

Yavatmal

Gadchiroli

Shirdi

Aurangabad
Beed

Hingoli

The major Power and Renewable Energy centers in Maharashtra include Pune, Ahmednagar, Akola, Alibag, Amravati, Aurangabad, Buldhana, Jalgaon, Kolhapur, Mumbai city, Nagpur, Nanded, Nasik, Ratnagiri, Satara, Sindhudurg, Solhapur,Thane,Wardha,Yavatmal.

Chandrapur

Mumbai Navi Mumbai

Ahmednagar Rajgurunagar

Nanded Latur

Pune

satara
Ratnagiri

Baramati

Osmanabad Solapur

Legend

Wind power Bagasse & biomass Small hydro power Solar energy International Airports Domestic Airports Airstrips Upcoming Airports SEZ

FDI

The total FDI investment in the Power & Fuel sector till February -2010 was INR 2841 Crores (4 %

of Total amount of FDI in the state)

Sangli kolhapur Sindhudurg

Total no. of renewable energy parks in the state is 55 Proposed renewable energy park 19 One Notified SEZ at Chandrapur

Source :http://www.mahaurja.com

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Power and Renewable Energy

Value Chain
Raw Material
Mining Mining Equipments Drilling Drilling Equipment

Generation
Thermal Power Gas Power Hydro Power Atomic Power Non Conventional Sources Power Generation Equipment Manuf.

Transmission
Transmission Equipment Manuf.

Distribution
Supply Billing and Collection

Sector

Power Generation Players MAHAGENCO (Maharashtra State Power Generation Co. Ltd.) Tata Power, Reliance Energy and Ratnagiri Gas and Power Pvt. Ltd.

Power Transmission Players MAHATRANSCO (Maharashtra State Electricity Transmission Co. Ltd.)

Power Distribution Players MAHAVITARAN (Maharashtra State Electricity Distribution Co. Ltd.)

Public

Private

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Power and Renewable Energy

MIDC Key Power Projects

1
MIDC - DMIC Power Projects (1000 MW GAS BASED COMBINED CYCLE POWER PROJECT)
Indapur Ville Bhagad

S.No
1 2 3 4 5 6 7

Name of the project

VIPL Group Captive Power Plant Wardha Power Plant Adani Power Plant India Bulls Power EMCO Power Plant Dhriwal Power Plant SEZ - Power

Developer
Reliance Group KSK Group Adani Group India Bulls EMCO Energy Ltd. Dhriwal Infrastructure Ltd. Bidding Invited

Location
Butibori, Nagpur Region Warora, Chandrapura Tiroda, Bhandara Amravati Warora Chandrapura Chandrapura

Capacity
300+ 300 MW 270 MW 2000 MW (660*3) units 2000 MW 520 MW 540 MW 1200 MW

Status
2011 completion 2010 completion 2012 completion 2012 completion 2012 completion 2013 completion -

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Power and Renewable Energy

Advantage Maharashtra

Highest FDI in the Country Single Window Clearance Mechanism Investor Facilitation Cell Highest contribution to Indias GDP Strong presence across value chain

Abundance of sites for tapping natural & renewable sources of energy

Availability of skilled manpower, R&D centers and training institutes

Largest installed capacity in the country for electricity generation Indias financial hub Abundant Land Bank Strong Infrastructure

Large and growing domestic market Proximity to international market

Worldwide Connectivity (Ports,Airports) Abundant Natural Resources Skilled Manpower and premiere R&D Centers LNG terminal Dabhol Terminal, Ratnagiri Power (NTPC) LTD, start operating the LNG terminal by December 2010

Advantage Maharashtra
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Power and Renewable Energy

Key Players

Centre of Power and Renewable Energy Industry

Company Sector Facility Manufacturing facility Company Sharada Sector Solar Facility Corporate Office Manufacturing facility Corporate Office Manufacturing facility

Global Wind Power

Wind

Kenersys

Wind

Manufacturing facility

Jain Irrigation Inc.

All Renewable Energy

Thermax

Power

Corporate Office

ESSAR

Power

Corporate Office Manufacturing facility Corporate Office Manufacturing facility

Reliance

Thermal Power

Corporate Office Manufacturing facility

Samved

All Renewable Energy

Suzlon

Wind

Corporate Office Manufacturing facility

Pearl Enterprise

Solar

Corporate Office Manufacturing facility

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Power and Renewable Energy

Education Infrastructure

All embracing Educational Support

Educational scenario for Power and Renewable Energy sector
Maharashtra has a strong skilled labor base supporting the power and renewable energy sector

Manpower strength in Maharashtra

Sector Institutions Capacity Admitted Students

Engineering Management Sciences Industrial Training Institutes

661 299 681

1,88,220 21,585 1,19,574

1,68,648 20,649 1,04,230

Power and Renewable Energy sector Training Institutes

Training Institutes Mahadiscom Mahagenco Mahagenco NPTI REL Department of Training, Research and Development Koradi Training Centre Generation Training Centre National Power Training Reliance Energy Management Institue

Training Institutes REL Tata Power Co. Tata Power Co. Tata Power Co. REL Versova Technical Training Centre Main Training Centre Plant Training Centre, Raigad Plant Training Centre, Mumbai Technical Training Centre, Thane

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Power and Renewable Energy

Power and Renewable Energy Sector Policy

Policy and regulatory support

National FDI Policy Electricity Act, 2003

Key benefits
Electric Generation, Transmission, Distribution and Trading: FDI up to 100% is permitted under automatic route. Promoted generation of electricity from renewable sources. The Policy emphasized on the full development of feasible hydro projects and Laid down procedures for the speedy implementation of the same.

National Electricity Policy, 2005

Emphasized use of Renewables for reducing dependence on energy imports.

Integrated Energy Policy, 2006

Rural Electrification Policy, 2006

The Policy recognized that non-conventional energy sources can be appropriately and optimally utilized to make available reliable supply of electricity to each and every household.

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Power and Renewable Energy

State level Policy and regulatory support

State GR 8/12/2005

Key benefits
New Renewable Policy 2008
Wind Energy Incentives - 80% accelerated depreciation in the first year, a 10year tax holiday, income tax waiver on power sold to utilities and favorable tariffs. Solar Power - Projects that do not claim accelerated depreciation benefits are entitled to generation-based incentives (GBI) that provides INR0.5/kWh of power sold, for Independent Power Producer (IPPs) with capacity >5 MW. Small Hydro Power - concessions on customs duty, a 10-year tax holiday and other state-level incentives including sales and electricity tax exemptions and preferential tariffs.The incentives also include capital subsidies. Incentives for biomass energy - Include accelerated depreciation, import duty concessions, excise duty exemption and a 10-year tax holiday. The incentives also include capital subsidies. Various export incentives have made India a key player in the global wind turbine generator (WTG) and solar PV cells market.

State Government incentives Wind power state policy 2008 Small Hydro Power - State Hydle policy 2005 Biogas & Biomass MERC tariff under MNRE Scheme Solar Energy - MERC interim traffic
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Power and Renewable Energy

State level Policy and regulatory support

State Green Energy Fund creation
The State Government considered it necessary to create separate funds to support renewable energy projects on wider scale partly through subsidy and partly by providing finance on commercial terms. Amendment to the Maharashtra Tax on Sale of Electricity Act 1963 was made in December 2004 and notification dated 15 May 2008 was issued to levy the Green Energy Cess equivalent to 8 paise per unit on the sale of electricity to commercial and industrial consumers. The State Government has created Urjankar Nidhi to provide seed money initially to support renewable energy projects. To manage the proposed funds, the public trust under the name of Urjankar Fund Trust has been established under the Indian Trusts Act, 1882. The fund is managed by I.L. & F.S. Investment management company. Approval to the comprehensive energy policy was accorded by the cabinet on 4 September 2008, by which target of commissioning 2000 MW capacity wind energy projects, 1000 MW capacity bagasse projects, 400 MW capacity biomass projects and 100 MW capacity small hydro projects has been finalised. Due to this policy support, the field of renewable energy and energy conservation is expected to show rapid progress.

Urjankar Nidhi creation

Comprehensive Renewable Energy Policy

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Power and Renewable Energy

Major Opportunities and Investments

Opportunities boundless
Maharashtra Power and Renewable Energy Sector
Demand A large consumer pool
Domestic demand

Supply A low cost manufacturing base

Frugal Engineering capability Low cost labor base Skilled workforce Increased focus on Infrastructure

Emerging Opportunities
Non - conventional sources of power generation Wind Energy (onshore & offshore), solar energy, biomass Power trading

Franchising power distribution

Nuclear power generation, coal gasification, mini micro hydel power

Coal bed methane generation

Page 30

R&D
Power and Renewable Energy

Calling Investments
Key upcoming projects in Maharashtra Power and Renewable Energy Sector Company Tiana Power plans Project Thermal, wind, hydro power, solar. Proposed Investment INR16,800 crore Location Ratnagiri Nasik (5x270MW) and Amravati (5x270MW)

BHEL

Thermal power

INR57.78 billion

Indiabulls Realtech Ltd (IRL),

Coal-based thermal power plant

INR 8,000 crore

Sinnar

Ispat Group

Thermal power plant

NA

Bhadravati

BHEL signed MoU with Maharashtra gas-based power project of 1,500 MW

Tata Power`s

Clean Development Mechanism (CDM) project

NA

Khandke

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Power and Renewable Energy

Maharashtra Power and Renewable Energy Key Contacts

MIDC The Prime Driver

Maharashtra Industrial Development Corporation (MIDC) a Govt. Of Maharashtra Undertaking

The prime organisation in Maharashtra bringing out the holistic development of the State Key Objectives
Planned Industrial Infrastructure Development

Key Activities
Dissemination of Investors Information MahaConnect Monthly Newsletter Ease of business: Single Window Clearance Maha e-Biz

Balanced Regional Development

Function as special planning authority Link between Govt. and Industry

Systematic Entrepreneur Facilitation

Acquisition and disposal of land Providing support Infrastructure

Mahindra & Mahindra, MIDC Page 33

IT Park, Pune,MIDC

CETP Kagal, MIDC

Water Supply Maintenance of Industrial Areas Drainage (effluent disposal) and CETP Schemes Other Services

Power and Renewable Energy

MIDC Development Model

MIDC : A leader in setting up several SEZ, parks and projects

MIDC
SEZ IT Parks Environment Projects
Established 13 Chemical Zone
Set up of Liquid Waste Management

Specialized Parks
Floriculture

SEZ developed by MIDC SEZ proposed by MIDC in JV SEZ developed through PPP

Developed - 32 IT parks

Proposed 4 Public IT parks

CETPs

Silver Zone

STPs

Textile

Food Parks

Wine Parks
Page 34

Power and Renewable Energy

Connecting further:

Principal Secretary Industries Room No. 114, 1st floor, Mantralaya Annex, Mumbai Maharashtra - 400032

` Maharashtra Industrial Development Corporation (MIDC)

Directorate of Industries New Administrative Building, 2nd floor Opp. Mantralaya, Mumbai - 400 032

Head office Maharashtra Industrial Development Corporation Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai-400 093

Principal office Maharashtra Industrial Development Corporation 4(A), 12th floor, World Trade Centre Complex, 1 Cuffe Parade, Colaba, Mumbai -400005

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Power and Renewable Energy