Approval has been granted by the state government for the diversion of 4.9 hectares of forest land in Mokhada, Palghar, enabling Mumbai’s first municipal hybrid renewable energy project to proceed. The initiative is being implemented at the Middle Vaitarna reservoir, where hydroelectric and floating solar power generation will be combined for large-scale output.
The Brihanmumbai Municipal Corporation (BMC) was given the final go-ahead on July 21, bringing to a close more than five years of procedural delays. An annual production of approximately 208 million units of electricity has been projected, with savings of around ₹12.6 crore expected in the operation of the Pise-Panjrapur water treatment facility. A fixed purchase rate of ₹4.75 per unit has been set under a 25-year agreement, and the project is being executed on a Design, Build, Finance, Operate and Transfer basis. As a result, no capital expenditure is to be incurred by the civic body.
The Middle Vaitarna Dam, completed in 2014 with dimensions of 102.4 metres in height and 565 metres in length, was designed with both water supply and future power generation in mind. A combined outflow channel was included in its design to accommodate hydroelectric production at a later stage. Permission to use the reservoir for hydropower was obtained by the BMC from the state’s Water Resources Department in 2019. Recommendations from consultants led to the adoption of a hybrid model, consisting of 20 MW of hydroelectric capacity and 80 MW of floating solar power.
Following a competitive tender, a joint venture between Shapoorji Pallonji & Company Pvt Ltd and Mahalaxmi Konal Urja Pvt Ltd was awarded the contract in February 2021. The project is being undertaken through a special purpose vehicle named Vaitarna Solar Hydro PowerGenco Pvt Ltd (VSHPPL). In the first phase, a 20 MW hydroelectric facility and a 6.5 MW (AC) floating solar plant are to be constructed. The completion timeline has been estimated at 24 months, excluding monsoon interruptions. Electricity generated at Middle Vaitarna is to be delivered to the Pise-Panjrapur facility through the Maharashtra State Electricity Transmission Company Ltd’s network. A 13-km transmission line is to be constructed to connect the dam to the Igatpuri grid point in Nashik.
Environmental clearance for the project was provided by the Ministry of Environment, Forest and Climate Change in two stages — Stage 1 in October 2024 and Stage 2 in April 2025. The approval granted in July 2025 for forest land diversion marked the final requirement before construction could commence. The initiative represents the first large-scale hybrid renewable energy venture to be undertaken by a municipal body in India. By integrating hydropower with floating solar technology, the project is expected to reduce dependence on conventional electricity, lower costs, and enhance Mumbai’s renewable energy share. If successful, it is anticipated that similar projects will be pursued by other urban administrations across the country.
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