IPP creates benchmark by closing the largest single deal in energy & infrastructure space.
IPP’s solar project 1.3 times over-subscribed
Mumbai: Welspun Energy Ltd. (WEL), one of India’s leading power generating company, has achieved financial closure for the country’s biggest 130 MW solar project, located in Neemuch district of Madhya Pradesh. Through a consortium of leading financial institutions, WEL has secured long term project funding of Rs.885 crores. On-ground work for the project is already in progress and it is slated to be commissioned by May 2014. Central Bank of India has been appointed the Lead Lender and Facility Agent for the consortium
WEL, through its subsidiary Welspun Solar Madhya Pradesh Private Limited (WSMPPL) won the project in May 2012 against 12 qualified bidders by quoting the second lowest tariff of Rs. 8.05 per unit. For the financial closure a Consortium of Banks are participating in the financing of this project in response to company’s proven track record and implementation ratio. WEL’s projects’ performance has been better than compared to any other IPP (Independent Power Producer (https://www.google.co.in/
Mr. Vineet Mittal, Co-founder & Managing Director Welspun Energy Ltd. Said, “The closure of the financial agreements indicates the confidence that financial partners’ have in our execution capabilities and expertise to complete the project in time. Through our innovative technology we have consistently demonstrated that solar tariff can be brought closure to grid parity in a short span of time. We are very proud to achieve 1.3 times over-subscription for our debt. Through the continued support by our financial partners, we are confident that the 130 MW project will be commissioned as per committed timelines and deliver better PLFs than other projects. This project will help India to meet its clean and green power requirements substantially.”
This project will meet the state’s annual power deficit of 17.9%, and will enable powering of more than 7,20,000 homes and mitigating 2,49,600 tones of carbon annually. The financial closure of this project has made the company one of the largest renewable players in the country.
Welspun Energy has more than 300MW of clean energy project in construction, of which 111 MW are operating assets and the rest are under construction. WEL aims to commission 1.75 GW of Solar & Wind projects Emphasis on engineering excellence and partnership with leading solar power equipment manufacturers have helped the organization to achieve these results.
Through its subsidiary Welspun Solar Madhya Pradesh Private Limited (WSMPPL), the IPP had won the project against 12 qualified bidders by quoting the second lowest tariff of Rs. 8.05 per unit. The quoted tariff bears noticing as it was second lowest tariff quoted and significantly lower compared to the prevalent feed-in-tariff of Rs. 15.35 per unit in Madhya Pradesh. Through a process of reverse bidding the state had invited bids for awarding a total of 200 MW solar projects. WSMPPL had quoted the second lowest tariff and the PPA was signed with Madhya Pradesh Power Management Company Limited.
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