Indian solar project developer Welspun Energy has secured financing for what it claims is India’s largest solar farm, a 130MW project in Mandsaur, Madhya Pradesh.
The company has obtained financing of Rs.885 crores (US$161 million) for the project, which its subsidiary Welspun Solar Madhya Pradesh successfully bid for in May 2012.
Construction is already in progress and is slated to be commissioned by May 2014. Central Bank of India has been appointed the lead lender and facility agent for the consortium of financiers who backed the project.
Welspun told PV-Tech that the modules and inverters for the project were sourced from Italy, Germany and Japan. The company would not provide any further details on companies supplying equipment.
Vineet Mittal, Co-founder and Managing Director at Welspun Energy said: “Through our innovative engineering capabilities, we have consistently demonstrated that solar tariff can be brought to grid parity in a span of two years. Through the continued support of our financial partners, we are confident that the 130MW project will be commissioned as per committed.”
The company claims its project will meet the state of Madhya Pradesh’s annual power deficit of 17.9%, which is enough electricity to power 6,60,000 homes, eliminating 2,29,550 tones of CO2 annually. The completion of this project will make Welspun Energy the largest solar power developer in India.
Welspun Energy has more than 300MW of clean energy project in construction, of which 111MW are operating and the rest are under construction. Welspun is planning solar projects worth 750MW for the end of 2016. The company has already signed a Memorandom of Understanding with the state governments of Madhya Pradesh, Rajasthan, Andhra Pradesh, Chhatisgarh, Karnataka and Gujarat to develop these projects. Welspun states that it is in advanced stages of project development with several key milestones like site surveys, land acquisition and applications for transmission permit already completed.
Welspun beat 12 other bidders in last year’s tender by offering the second lowest tariff of Rs.8.05 per unit.