Welspun raises $161m for 130MW Indian PV plant

Developer Welspun Energy says it has reached financial close on a 130MW PV project in the state of Madhya Pradesh, India.

The plant – which Welspun is billing as India’s biggest PV project to date – is due to be commissioned in May 2014.

Welspun secured long-term project funding of 8.85bn rupees ($161m) to build the plant, via a consortium led by Central Bank of India.

The developer won the project in a reverse auction run by the state last year, when it was the second-lowest bidder with a tariff of 8.05 rupees ($0.146) rupees per kWh.

Work has already started at the site in Mandsaur district.

Vineet Mittal, managing director of Welspun Energy 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 engineering capacilities, we have consistently demonstrated that solar tariff can be brought to grid parity in a span of two years.”

Welspun, one of India’s most ambitious developers, hopes to commission 1.75GW of wind and solar capacity over the next three years or so.