Rs.15,000 crores investment by Welspun Energy in Wind and Solar projects

Posted On: Wed, Mar 06 2013. 12 18 AM IST, Mumbai

Welspun Energy Ltd., a part of the USD3.5 billion Welspun Group, has decided to invest Rs.15,000 crore to build wind and solar power with a generation capacity of 1,750MW in the next 3 years.

Managing Director Vineet Mittal, at a media briefing said that by the end of year 2013, they will invest Rs.3,000 crore in Wind and Solar projects, out of which 111MW is operational and 200MW is under construction. Mittal said that the rest of the capacity will come up by the end of year 2016, of which 1000MW will be powered by Wind and the remaining by Solar.

He also announced the fund tie-up for the 130MW, a Rs.1,175 crore Solar Power project at Neemuch, Madhya Pradesh, which the company obtained through a competitive bidding in May. As of now the project is expected to be completed sometime early in 2014.

According to official sources, the installed capacity of 18,552MW on January 31 by the Indian Wind Energy Sector is the fifth largest in the world. The potential for the utilization of wind energy for electricity generation in the country is 102,000MW, estimates Lobby Group Indian Wind Energy Association With a low gestation period, the Wind sector enables timely commissioning of projects with unlimited risks of costs and time overruns, unlike hydropower or conventional power assets, says Mr. Sandeep Upadhyay, Senior VP and Head - Infrastructure & Logistics, Centrum Capital Ltd.,.

"Cost per megawatt for executing wind power projects now has come down to approximately Rs.5 crore to Rs.5.5 crore. This further enhances the viability of projects," Upadhyay said, adding there was a modest desire for financing from private equity firms and lenders to support wind-focused independent power producers.

"It is a small but growing trend in solar sector that those who have firm power-purchase agreements with state-owned distribution utilities are able to raise non-recourse financing from financial institutions," said Seshan Balakrishnan, Director - TAS, Infrastructure at Ernst&Young.