India-based Welspun Energy, subsidiary of the Welspun Group, is planning to invest $1.6bn in renewable energy projects by 2017.
The company, which will commission the world’s second-largest solar power plant as well as two other energy projects by December 2013, will invest in solar and wind projects, The Economic Times reports.
With the investment, the company plans to double the production at its 151MW plant located in the central Indian state of Madhya Pradesh by 2017.
According to the company, the renewable energy companies are free of some of the obstacles like coal and gas shortages as well as fuel transport hassles that are affecting the country’s thermal power industry.
Welspun Energy managing director Vineet Mittal was quoted by Reuters as saying that the Banks should create a separate sector-lending cap for renewable energy to avoid it being considered with par to thermal power projects.
"The risk-reward here is totally separate than a conventional power plant, so it has to be looked at differently," Mittal said.
"I think the government is consciously trying to do something, but it’s still not very effective, so availability of the funding is very, very critical."
The Welspun Energy aims to achieve solar and wind power generation capacity of 1,700MW by 2017, representing an eight-fold increase compared to the current capacity.
Earlier, the company had signed an agreement with the Government of Chattisgarh to install a 100MW solar power project in India.
Press Release: http://powerenergyindia.com/content/india%E2%80%99s-welspun-energy-invest-16-bln-solar-wind-projects-2017
http://articles.economictimes.indiatimes.com/2013-10-11/news/42942027_1_welspun-energy-power-projects-wind-projects
India’s Welspun Energy to invest $1.6 bln in solar, wind projects by 2017
The Indian firm Welspun Energy, will commission the world’s second-largest solar power plant and two other projects by December, it will also invest an additional $1.6 billion in new projects over three years, its managing director said on Friday.
The 151 MW plant in the central Indian state of Madhya Pradesh is a big leap of Welspun towards capturing a slice of the renewable energy market, which is projected to be doubled by the government in next five years by 2017.
The renewable energy companies are free of some of the obstacles plaguing their peers in India’s thermal power industry, such as coal and gas shortages and fuel transport hassles.
The sector still faces problems include land acquisition for projects, a creaky transmission network and debt ridden state distribution companies that are often too broke to buy power.
The Banks should create a separate sector-lending cap for renewable energy to avoid it being considered with par to thermal power projects, Vineet Mittal told Reuters at his office in the Indian capital, New Delhi. The Banks have become increasingly unwilling to lend to Indian infrastructure builders, who are saddled with heavy debt and stalled projects.
"The risk-reward here is totally separate than a conventional power plant, so it has to be looked at differently. I think the government is consciously trying to do something, but it’s still not very effective, so availability of the funding is very, very critical," Mittal said.
The Welspun Energy, which is a part of the textiles-to-steel Welspun Group, aims to have an installed capacity of 1,700MW of solar and wind power by 2017, which is an eight-fold increase from its current size.
