ADB invests equity capital in Welspun Energy group company
Jun 23 2014 , New Delhi
ADB made the equity investment in Welspun Renewable Energy Pvt Ltd which plans to add at least 200 MW of solar power projects and 100 MW of wind power projects by March 2016.
The equity infusion "will help demonstrate that profitable investments are achievable in the renewable energy space and will help catalyse more private investments," the company said in a statement here.
Welspun is one of the leading renewable power developers in India.
The firm had 328 MW of operational solar and wind projects in states like Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, and Rajasthan. It plans to expand this to 1,750 MW in next three years with an incremental capital outlay of over Rs 11,000 crore, the statement said.
Welspun Renewable Energy vice chairman Vineet Mittal said, "With this investment, the renewable energy sector has got a much needed shot in the arm, it shows the promise that this sector can realise and ADB's investment is a testimony to that."
Close on the heels of the recent $24 million General Electric investment in its 151 MW Neemuch project, the ADB investment is yet another milestone for the company.
"With this deal, we can only hope that India becomes a shining example of focusing on clean energy to meet its energy security needs and help build a cleaner, greener India for the generations to come," he said.
An ADB project document said its investment will "help demonstrate that profitable investments are achievable in the renewable power sub-sector and, as such, will catalyse more private investments in renewable energy."
Supported by favourable government policies for renewable power, the private sector's share in the total installed capacity of renewable energy in India is expected to increase from 33 per cent in 2011 to 50 per cent in 2023, it said.
"The project is expected to generate 540 gigawatt-hours of electricity annually and avoid 400,000 tonnes of carbon dioxide emissions annually from FY 2017 onwards. The project will further contribute to local employment and tax revenue," the document added.