Welspun Invests in 100 MW Chattisgarh Solar Project
Welspun Renewables Energy Ltd, a subsidiary of Welspun Energy, has inked an MoU with Chattisgarh government for installing 100 MW Solar Power project, the company said in a press statement here. The MoU was signed in Raipur.
“The project is to be commenced in 2015, entailing an estimated investment of Rs 1,000 crore,” the company said. With this project WEL will achieve an annual CO2 emission reduction of 158,118 tonnes. The project will de- carbonize state’s energy portfolio by 2015.
The state government will facilitate the approvals, land acquisition, registration and clearances for the project. Welspun is developing more than 250 MW solar and 800 MW wind capacity in Rajasthan, Madhya Pradesh and Karnataka. It plans to commission 1.7 GW of solar and wind power projects within the next three years.
“Welspun Energy has been in talks with various state governments for expansion of their renewable energy generation portfolio,” the statement said. Recently, it won Asia’s biggest solar power project of 130 MW through bidding, to be developed in Madhya Pradesh.
“A careful balance needs to be maintained for meeting India’s accelerating energy needs. De-carbonising production and accelerating economic activity has to be balanced,” said Vineet Mittal, co-founder and MD of Welspun Energy Ltd.
“The state governments have to adopt a proactive role. Green energy can be made affordable if more and more states take initiatives to expand their renewable portfolio. Dependence on fossil fuels must decrease,” he said.
WEL said it is confident that it will be able to source appropriate funding for this project in time.
Mittal said that by successfully commissioning its solar projects within committed timelines, the company has been able to earn the support of private investors.
Testament to this is the recent financial closure of Welspun Energy’s 50 MW solar project in Rajasthan; a consortium of banks led by Central Bank of India have supported this project, he added. Mittal said however that uncertain policy framework, payment security issues create edginess in investors to support power projects.
Welspun Energy is part of the USD 3.5 billion Welspun Group, with businesses in power generation, infrastructure, exploration and production of oil and natural gas, steel pipes and textiles. Welspun Energy is setting up 750 MW of solar power and 1 GW of wind power plants across India, amongst the largest capacities for power generation in the country.