India, Aug. 10 -- The state government has cleared the way for Mumbai's first municipal foray into hybrid renewable energy, granting final approval for the diversion of 4.9 hectares of forest land in Mokhada, Palghar, for a hydroelectric and solar power project at the Middle Vaitarna reservoir.

The Brihanmumbai Municipal Corporation (BMC) received the crucial nod on July 21 - the last of several approvals - enabling construction to finally begin on a project that has been on the drawing board for over five years. Once operational, it is expected to generate about 208 million units of electricity annually, helping cut the civic body's power bill by Rs.12.6 crore a year at the Pise-Panjrapur water treatment plant.

Under a 25-year agreemen...