Welspun secures Rs 355 crore funding for its solar unit Rajasthan

Welspun Energy Limited (WEL), a part of the multi diversified $3.5 billion Welspun Group has achieved financial closure for a 50 MW solar PV project in Rajasthan. WEL has secured long term project funding of Rs 355 crore from a consortium of lenders comprising of three PSU Banks and one Infrastructure Finance PSU. The PPA was signed with NVVN on the 27th of January 2012 and the project is expected to be commissioned in the first quarter of 2013.
Vineet Mittal, Managing Director, WEL said, “The quick financial closure reinforces the faith and support of the financial sector in Welspun Energy’s credibility and unmatched skill at project execution, commissioning and power generation. This is a major development for WEL and the renewable energy sector, given the difficulties faced by most power project developers in organising project finance.” The company aims to achieve grid parity within the next few years.
During the JNNSM’s Phase-1- Batch-2 auction, 20 bidders were awarded projects to be implemented in the state of Rajasthan. Welspun Solar AP Pvt. Limited, a subsidiary of WEL, emerged as the only successful bidder for the 50MW, the maximum capacity allowed for a single bidder. The weighted average tariff of Rs 8.05 per unit quoted by the company was one of the lowest quoted at the time.

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