Dhule (Maharashtra), May 21 (IANS): A 150-MW solar power plant, said to be the world's largest, will come up in Maharashtra's Dhule district at a cost of Rs.1,987 crore, Chief Minister Prithviraj Chavan said Friday.

Chavan said that the power plant is expected to be ready by 2012-end at Shivaji Nagar.

While the state government would contribute Rs.394.40 crore capital or 20 percent of the total cost, German financial institution KFW will provide funding for the mega-project, which would also include expanding the existing solar power plant in Chandrapur.

As part of the government's efforts to tap alternate sources of energy, Chavan said it would use solar photovoltaic technology.

Considered the fastest growing power generation technology, it converts solar radiation into direct electricity current using solar panels comprising many cells containing photovoltaic material.

It will be operated by the state-owned power generation major, Maharashtra State Power Generation Co (Mahagenco), and provide the solar power to its distribution arms, Maharashtra State Electricity Distribution Co (Mahadiscom) at the rates finalized by the Maharashtra Electricity Regulatory Commission (MERC).

The Dhule solar power plant will also supply power to the Bombay Electricity Supply and Transport Undertaking (BEST), which supplies power to Mumbai's consumers.