The Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) will collaborate with 29 different power companies for the installation of solar power plants in the southern Indian state.

The proposed plants will be set up across various districts of the state, including Ramanathapuram, Sivaganga, Tuticorin, Virudhunagar, Karur, Vellore, Tiruvannamalai and Kancheepuram with an aggregated 226MW.

Following the issue of Letter of Intent, the firms will have to develop the plants in nine month period ending in January 2014, reported Hindu BusinessLine.

The power plants thus established will be developed under the new Solar Energy Policy of the Tamil Nadu state government.

The newspaper quoted a source was quoted as saying that until 31 March 2013, initial price of each solar power unit will be INR6.48 ($0.12), however, starting fiscal 2014-2015, the price will be increased by 5%.

As per the policy, high tension consumers including information technology parks and special economic zones and low-tension commercial consumers have to meet three per cent of their energy requirements through solar energy by the end of this year and six per cent from January 2014, the source added.