Moser Baer India, with business interest in optical storage media, is developing a 1 MW solar power project in Chandrapur in Maharashtra.
When completed, it will be one of the largest solar projects in the world using the latest thin film technology, the firm said. Thin films improve the efficiency with which solar cells convert sunlight to electricity.
The company won the contract from Mahagenco, a Maharashtra government-owned power utility, on the basis of a global tender that attracted 20 bids.
The project will be commissioned in consortium with SunEnergy GMBH of Germany, the company said in a statement.
"The agreement terms include commissioning of the project by January 2010 and maintenance of the project thereafter," the firm's spokesman said.
"This project, I am sure, will herald the widespread deployment of such solar farms in the country," said Moser Baer executive director Ratul Puri.