Welspun lines up Rs15,000 cr for expansion in solar, wind power
16 August 2014
The Welspun Group, one of India's largest renewable energy producers, has announced plans to invest Rs15,000 crore to take its generating capacity to 1.75 gigawatts over the next three years.
Most of the fresh investment will be in the solar space will be on solar projects focussing on Andhra Pradesh, Maharashtra, Punjab and Rajasthan. On the wind energy front, the company plans to have 120 MW by the end of this financial year.
The diversified Mumbai-based Welspun Group, which is also the world's second-largest home linen maker and one of the top heavy industrial pipes producers, is in the pipes, plates and coils, steel, infrastructure and energy sectors, and had grossed over Rs18,000 crore in revenues in 2013-14.
It has two subsidiaries in the energy space - Welspun Renewables Energy and Welspun Energy - one for the solar and the other for wind power respectively.
The private equity arm of the Asian Development Bank had recently picked around 11 per cent in Welspun Energy for $50 million.
"We are planning to invest up to Rs15,000 crore over the next three years in the renewable energy space to take our total generation to 1.75 GW. While we already have a commissioned capacity of 328 MW, mostly in the solar space, we have close to 725 MW under development," Welspun Group chairman B K Goenka told PTI.
He said the company has already invested over Rs3,000 crore into the power sector so far.
Goenka said his company has the capabilities to do the design, engineering and construction of renewable projects, which brings down his execution cost.
"Our projects are among the highest generating ones in the country and we are largest solar power producer in the country today with 330 MW of generation," he said.
Asked why the focus on the heavily regulated energy sector, Goenka said the surety of returns makes energy one of the key areas to be in - there will be no lack of demand for power in India.