Welspun Group, India’s largest solar power developer has signed an agreement with the government of Andhra Pradesh for a 100MW solar power plant and has won the Madhya Pradesh bid at Rs 8.05 to set up a 125MW solar power plant. Welspun Solar Madhya Pradesh Private Ltd (WSMPPL) won the bid which is fully owned subsidiary of Welspun Renewable Private Limited. The 125 MW photovoltaic project in Madhya Pradesh is at an estimated cost of $225 million which would be funded 75:25 debt-equity ratio. There will be 2 separate projects of 100MW & 25MW which form a major part of the 200MW which was up in the Madhya Pradesh bidding process on 10thMay, 2012 where bids of more than 430MW was received from companies like Azure & BGR Energy. These projects will be set up in Mandsaur & Neemuch district in the time period o 18 months. The reverse-bidding format was followed here where the Project Developer who was ready to sell power at the least rates would win the bids. Director, Vineet Mittal believes that India will reach Solar power grid parity, wherein electricity provided through other cheap conventional sources will equalize the amount per unit generated through solar energy.
In this present scenario Madhya Pradesh is facing an annual power deficit of 17.9%, but this project will help in powering of 6,60,000 homes & eliminating 2,29,550 tonnes of carbon annually. Through this particular project and other commissioned projects across Andhra Pradesh, Gujarat & Rajasthan, they aim to reduce the power deficit of these states and provide enough electricity to the 500million people in India who till date live without electricity.
Welspun Energy entered into a contract with the NREDCAP (New& Renewable Energy Development Corporation of Andhra Pradesh) in January, 2012 for setting up a 100MW solar energy plant. The project cost for this plant is estimated at Rs 950cr which is estimated to be completed by 2013. The land for this project has been acquired by the company itself and Welspun Energy themselves will construct & maintain the plant, unlike companies entering into EPC (Engineering, Construction & Procurement) contracts. Andhra Pradesh is strongly marching onto its road of infrastructural policies with its enhanced approach & investor friendly policies.
This $3 billion dollar group aims to develop 250MW solar power projects in the coming few years & it also aims to excel in its other business avenues like infrastructure, exploration, production of oil, natural gas, steel pipes and textiles. With these initiatives from Welspun Energy it definitely helps India to achieve its goals of getting solar generated electricity at affordable prices and reduce people’s dependence on other cheap but harmful sources like fossil fuels. Therefore, it is very important for India from the business & environment point of view to build on a sustainable solution for power generation. Welspun Energy has also recently bagged a 50MW solar power project in Jawaharlal Nehru National Solar Mission (JNNSM) bidding. Therefore, the company aims at investing a lot in Project Development and Research which can help them build further and excel in the Power Generation in India.