The Strategist · The Operator · Profit and Planet

Why is Gujarat building a 600 MW solar plant for Telangana and Punjab?
NHPC is building a 600 MW solar project at Khavda RE Park in Kutch, Gujarat, at a cost of ₹4,295.6 crore including five years of operation and maintenance. It is under construction now, with commercial operation estimated for September 2027. None of the power stays in Gujarat. 500 MW is contracted to Telangana’s Southern and Northern distribution companies and 100 MW to Punjab State Power Corporation, evacuated through a 15 km, 400 kV line to the KPS-III interstate substation.
This is what the central public sector undertaking scheme is actually for. Kutch has the irradiance, the land and almost no local demand. Telangana and Punjab have the demand and neither the land nor the sunlight. The project is a transmission decision as much as a generation one, and the 15 km of 400 kV line is the part that makes the long-distance sale possible.
The technical shape tells you how the economics work. The plant runs a DC to AC ratio of 1.5, meaning roughly 900 MWp of direct current capacity is being installed to deliver 600 MW alternating current at the meter. That is heavy oversizing, and it is what you do when land and modules are cheap and you want a flatter output curve across the day rather than a sharp noon peak. Design energy is 1,766.55 million units at a capacity utilisation factor of 33.59%.
NHPC states the commercial operation date as estimated. Treat September 2027 as the developer’s own projection, not a commitment.
Module, tracker and mounting-structure suppliers, on the basis that a 1.5 ratio means the module order is half again the headline capacity. Transmission contractors for the 400 kV evacuation. And long-term operations and maintenance providers, because five years of comprehensive O&M is inside the same contract rather than tendered separately later.
Read the offtake structure before you price anything. A plant selling to two distant state distribution companies has a different revenue risk and a different payment record from one selling to its host state, and the distribution company’s payment history is the number that should shape your terms.
Source and reference: NHPC Limited, project page, last updated 27 August 2026. · nhpcindia.com · project detail




