AT A time when the country is facing a difficult time with a steep hike in fuel and cooking gas prices, the foundation stone of India's first 2 MW Solar Photovoltaic Power Plant will be laid on Monday in West Bengal.

Talking to the Hindustan Times, N.E Singh, advisor, Ministry of New and Renewable Energy said "India will be the second country, after Japan, in Asia to have this kind of a plant to exploit solar energy for gen- erating electricity. The power from the plant will be feeding the grid."

Singh said the plant, which will be set up by the West Bengal Green Energy Development Corporation (WBGEDC) was the first proposal to be cleared by the ministry under the new scheme of Grid Connected Solar Power Generation announced in January this year.

To encourage investment in the area, the ministry is ready to pay upto Rs 12 per unit of electricity, which is fed to the grid to meet the cost of production. The cost of production, including 10 to 12 per cent profit, is Rs 15, he said.

Dishergarh Power Supply Company Ltd, which has provided 8.3 acres of land on lease has also signed a power purchase agreement with (WBGEDC) at the rate of Rs 5 per unit for 10 years. The ministry will give an incentive of Rs 10 per unit.

He said the Rs 39 crore project will be completed by March 2009. Once operational, the plant will generate 2.86 million units per annum. It will be located in Seebpur area of Asansol.