(NewNet News) - Solar power plant developer P2 Solar has signed a letter of intent with South Korean photovoltaic engineering company OSolar to form an alliance for a 25MW solar project in Punjab, India.

India has so far been restrictive to foreign investment into its renewable energy sector but has publically announced its ambition to have 20GW of solar power installed by 2022.

The project proposes the first solar plant of its kind in the region and will therefore become a showcase project in Punjab, P2 Solar said.

Both companies participated in working on the technical feasibility study of the project that was submitted to the Indian government agencies at the end of January and are now awaiting central government approval for the project, which forms part of a larger 200MW development.