Eletrotherm (India) Ltd. is reportedly exploring an option of setting up of a 50MW solar thermal power plant in Kutch region of Gujarat.

The company plans to invest around US$80 million in this project.

"We intend to set up a solar thermal power plant in the Kutch region in the state. We will be signing a memorandum of understanding with the Gujarat government during the upcoming Vibrant Gujarat Global Investors' Summit (12-13 January),"  Mukesh Bhandari, chairman and chief technical officer of Electrotherm, said according to business-standard.com. Hoping for an approval from the state government, the company expects the project to be completed within 18 months. Once commissioned, power will be sold for domestic and industrial use alike, added Bhandari.

For its part, the Gujarat state government has come up with its Solar Power Policy 2009. Under the policy, the first of its kind being introduced in Gujarat, the Government promises a slew of incentives to prospective developers who may want to set up solar power projects in the state. The developers will be allowed to sell for 25 years energy generated from their projects to licensee distributors in the state under a Power Purchase Agreement (PPA) to be specified by the state utility, Gujarat Urja Vikas Nigam Limited (GUVNL).