MUMBAI: The state government has cleared the way for Mumbai’s first municipal foray into hybrid renewable energy, granting final approval for the diversion of 4.9 hectares of forest land in Mokhada, Palghar, for a hydroelectric and solar power project at the Middle Vaitarna reservoir.
The Brihanmumbai Municipal Corporation (BMC) received the crucial nod on July 21 — the last of several approvals — enabling construction to finally begin on a project that has been on the drawing board for over five years. Once operational, it is expected to generate about 208 million units of electricity annually, helping cut the civic body’s power bill by ₹12.6 crore a year at the Pise-Panjrapur water treatment plant.
Under a 25-year agreement, the BMC will purchase power from the contractor at a fixed rate of ₹4.75 per unit. Significantly, the project will be executed on a Design, Build, Finance, Operate and Transfer (DBFOT) basis, meaning the civic body will not incur any capital expenditure.
The Middle Vaitarna Dam, completed in 2014 at a height of 102.4 metres and length of 565 metres, was envisioned not just for water supply but also for power generation. Its combined outflow channel was designed to accommodate hydroelectric production in the future.
In 2019, the BMC secured permission from the state’s Water Resources Department to generate hydropower from the reservoir. Consultants later recommended a hybrid model combining 20 MW of hydroelectric power and 80 MW of floating solar power.
Following a tender process, the contract was awarded in February 2021 to a joint venture between Shapoorji Pallonji & Company Pvt Ltd and Mahalaxmi Konal Urja Pvt Ltd. A special purpose vehicle, Vaitarna Solar Hydro PowerGenco Pvt Ltd (VSHPPL), was formed to implement the project.
The first phase will focus on the 20 MW hydroelectric facility and a 6.5 MW (AC) floating solar installation. Construction is expected to take 24 months, excluding the monsoon period.
Electricity from Middle Vaitarna will be transmitted to the Pise-Panjrapur plant through the existing network of the Maharashtra State Electricity Transmission Company Ltd (MSETCL). A new 13-km transmission line will connect the dam to the nearest grid point at Igatpuri, Nashik.
The project’s environmental clearance came in two stages from the Ministry of Environment, Forest and Climate Change (MoEF&CC): Stage 1 in October 2024 and Stage 2 in April 2025. The final go-ahead from the state government — specifically for the diversion of forest land — was the last hurdle, now cleared in July 2025.
The Middle Vaitarna hybrid power project marks the first time a municipal body in India is venturing into large-scale hybrid renewable energy generation. By leveraging both hydropower and floating solar technology, the BMC aims to reduce its dependence on conventional power sources, lower electricity costs, and contribute to Mumbai’s renewable energy footprint.
If successful, it could set a precedent for other cities to integrate green power generation into existing water infrastructure.