The municipal body for south Delhi Friday signed an agreement with the Solar Energy Corporation of India (SECI) for developing two solar plants for generating total power worth 27.5 MW, officials said.

"The SDMC inked an MoU with the Solar Energy Corporation of India (SECI) for generation of total 27.5 MW power from two separate solar plants, at Ghuman Hera near Najafgarh in Delhi, and a piece of land owned by the SDMC in Faridabad in Haryana," it said in a statement.

The agreement has been signed in continuation with the government of India's initiative on green energy concept and solar initiative of the SDMC.

The SDMC has decided to utilise these vacant land for installation of solar plants. The MoU was exchanged by SDMC Commissioner P K Goel and Director of SECI Shailender Kumar Mishra.

South Delhi Mayor Narender Chawla said in Haryana, the site has been identified at Ferozpur village.

"At Ghuman Hera (105 acres) and Ferozpur (9.45 acres) of land is available for setting up the solar plants. After a detailed study, the solar energy plants of estimated capacity 25 MW and 2.5 MW have been planned at Ghuman Hera and Ferozpur. They are expected to be commissioned in 18 months after the start of work," he said.

Chawla said the estimated cost for the projects at Ghuman Hera and Ferozpur are Rs 145 crore and Rs 20 crore respectively. The funds for this project will be generated through public bonds, and action for this has already been initiated.

SDMC's Standing Committee Chairperson Shikha Rai said the SDMC will save Rs 22.5 crore per annum from the Ghuman Hera project and earn Rs 1.55 crore from exporting energy generated by Ferozepur plant.

She said the commissioning of the two plants is in tune with SDMC's commitment to minimise consumption of thermal power, conserve natural resources and environment and earn huge savings.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)