Mumbai: Optical media storage device maker Moser Baer (India) Ltd is setting up a grid-connected solar farm in Rajasthan, involving an investment of Rs100 crore ($25 million).

Moser Baer Photo Voltaic (MBPV), a wholly owned subsidiary of Moser Baer India Ltd, has signed a memorandum of understanding (MoU) with the government of Rajasthan for setting up of a large solar power project in the state with an estimated generation capacity of 1 to 5 MW, Moser Baer said in a filing with the Bombay Stock exchange (BSE).

The project will be the largest grid-connected solar farm in India and entail an investment of around Rs100 crore ($25 million), at $4.5 million per megaWatt of electricity produced.

The MoU was signed today at the ''''Resurgent Rajasthan'''' summit at Jaipur between MBPV and Rajasthan Renewable Energy Corporation (RREC).

Moser Baer said it was also evaluating options to set up large-sized solar farms across the South Asian Association for Regional Co-operation  (SAARC)  countries. The company is also planning strategic tie-ups with leading global solar companies and clean energy funds, it said.

"MBPV aims to redefine the paradigms of solar power generation through its world class manufacturing and multi technology capabilities and demonstrate a commercially viable, grid-connected PV energy system in India through this project," said Ravi Khanna, CEO of MBPV. "This project is a pioneering initiative in that direction and we believe that the SAARC region provides huge opportunity for such large sized projects." he added.

Moser Baer Photo Voltaic plans to emerge as a leading  technology-driven PV equipment manufacturer in the world by implementing a capacity of 500 MW by FY10 through a mix of
technologies in the crystalline silicon, concentrator and thin film domain, the company said.

The company''''s photovoltaic equipment manufacturing capacities for crystalline silicon, concentrator and thin film technologies are coming up in an SEZ in Greater Noida.

Rajasthan is on course to become self-sufficient in power by 2008. Besides setting up new power projects in the state sector, the government is also promoting private investment in power  generation.

The state has a total installed capacity of 5,500 MW of power and will add 4500 MW by 2011-12 through state sector projects of 1500 MW, private sector projects of 1500 MW and central sector projects of 1500 MW.

Rajasthan already generates over 520 MW of non-conventional power from private units.

Shares in Moser Baer were up 3.24 per cent at Rs268 in morning trade in Mumbai.