French multinational electric utility, Engie has won a bid to build a 338MWp solar power plant in India through its subsidiary, Solairedirect India.

The solar plant, which will come up in the South Indian state of Andhra Pradesh (AP), saw Engie propose the most competitive bid at INR 3.15/kWh ($48.7/MWh) for the power to be sold to India’s largest electric utility, NTPC.

Named as NTPC Kadapa, the solar plant is slated to become operational by mid-2018.

 A statement from Engie in this regard read: “This tender has been subject to both fast and highly competitive bidding processes with the participation of 7 Indian and international contractors; it illustrates also the sharp drop in prices of solar energy in India.”

The bid is part of the National Solar Mission – Phase II, an initiative launched by the Indian government in 2010 to accelerate wide development of solar generation across the country and achieve a solar capacity of 100GW by 2022.

India Power Minister Piyush Goyal on the bid said: “Clean affordable power for all: Solar achieves another record low of Rs. 3.15/ unit (flat rate) during auction in Kadapa, AP by NTPC.”

With the addition of the NTPC Kadapa solar park, Engie will take its total capacity in India to 810MWp.

In July 2015, Engie had bought a 95% stake in the 2006-founded French-based Solairedirect through which Solairedirect India became its subsidiary.

Earlier in the month, Engie acquired 100% of La Compagnie du Vent for an undisclosed sum. Before the transaction, Engie had a 59% stake in the French renewable energy company with the remainder interest of 41% bought from Soper.