NEW DELHI: The Suzlon group today announced that it has entered into a joint venture with Ostro Energy for development and construction of a 50-mw solar project in Telangana.

According to the contract signed between Ostro Energy and the Suzlon group on Monday, Ostro Energy shall acquire 49 per cent stake in Prathamesh Solar farms, a special purpose vehicle (SPV) set up by Suzlon to execute this project, the company said in a statement.

Ostro Energy has the option to acquire the balance 51 per cent in future in accordance with relevant rules and regulations. The off-taker of this project will be Telangana Southern Power Distribution Company, the statement said.

Suzlon will be responsible for the project commissioning and also provide comprehensive operation and maintenance services for 25 years.

"The project is expected to be commissioned in the financial year 2017 (FY17) and will be funded 75 percent by debt and 25 percent of equity," it said.

Suzlon won solar projects of 210 MW in Telangana through a competitive bidding process and the power purchase agreements (PPAs) for the same were signed in February. These include one project of 100 MW, one of 50 MW and four projects of 15 MW each.

"With the government's thrust on renewables... this is the right time for us to foray into solar energy. This JV for our first solar project in Telangana is a significant step for the company towards a balanced energy portfolio. This is aligned with our vision to be a 1,000 MW renewable energy company in India by 2018," said Ostro Energy CEO Ranjit Gupta.

"We believe that if India's renewable potential is unlocked, it can transform the country's energy architecture to be dominated by clean energy sources. We look forward to our continuing partnership with Ostro and contributing to the country's energy security," said Suzlon Group CEO J P Chalasani.