Indian state-owned energy company SJVN has entered an agreement with Tata Power Solar Systems to develop a 1GW solar power project in Bikaner, Rajasthan.

The Economic Times reported that the engineering, procurement and construction contract is valued at Rs55bn ($708m).

According to SJVN chairman and managing director Nand Lal Sharma, it is the largest solar contract awarded in India to date.

Under the terms of the contract, Tata Power will be responsible for the end-to-end delivery of the commissioned solar plant to SJVN.

The deal includes an arrangement of land on an outright purchase basis and a power evacuation system up to the ISTS Sub Station.

It also includes the operation and maintenance of the solar photovoltaic plant for a period of three years.

The project is scheduled to come online by May 2024 and will generate 2.45 billion units of green electricity in its first year of operations, followed by 56.84 billion units over a span of 25 years.

The solar project is expected to reduce more than two million tonnes of carbon emissions over a period of 25 years.

Sharma said: “Recent successive additions of new renewable projects in the company’s portfolio show our commitment to empowering the nation for expanding its non-fossil fuel-based energy and decarbonisation of the economy.”

SJVN said it had secured the project through the Indian Government’s Central Public Sector Undertaking (CPSU) scheme.

The company currently has a portfolio of around 31.5GW and has also diversified into power transmission and power trading.

In a separate development, Tata Power subsidiary Tata Power Renewable Energy (TPREL) has commissioned a 1GW project for Maharashtra State Electricity Distribution Company (MSEDCL) in Partur, Maharashtra.

The power project features more than 411,900 monocrystalline solar modules and is expected to offset around 234 million tonnes of carbon emissions a year.