Bengaluru, May 31 (IANS): A Tata Power subsidiary will build a 100 megawatt (MW) solar project at Raghanesda in Gujarat's Banaskantha district, the leading integrated power major said on Friday.

"Our subsidiary Tata Power Renewable Energy Ltd has received the order to build the 100MW solar plant from the state-run Gujarat Urja Vikas Nigam Ltd (GUVNL) at Raghanesda solar part," the city-based company said in a statement here.

The company, however, did not mention the project cost in its statement.

As part of the power purchase agreement (PPA), the Tata arm will supply the power distributor GUVNL energy from the solar plant for 25 years from the commercial operation date.

"The order will enable us to contribute towards clean and green energy through solar power generation," Tata Power Chief Executive Praveer Sinha said in the statement.

The order will also enable the company to demonstrate its commitment to renewable energy, project development, engineering and execution.

"The project will generate 35-40 per cent of our production capacity from clean energy sources. We hope to build on our capabilities and set benchmarks in the sector," said Tata Power President (renewables) Ashish Khanna.

"The project will also enhance our generation capacity to 500 MW, which is in addition to the 2,268 MW existing capacity."

"The solar plant will generate 250 million units of energy annually and offset about 250 million kg of carbon dioxide (CO2)," said the statement.

The company has 931 MW operating wind and 1,337 MW solar capacity in 10 states across the country, including Andhra Pradesh, Bihar, Gujarat, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu and Telangana.

"The company is also implementing 400MW of renewable power projects at various locations on greenfield basis," added the statement.