Making its largest equity investment in the space, Asian Development Bank has made an infusion of INR 3,100 Mn (c.$50 Mn) in Welspun Renewable Energy Limited, 100% subsidiary of Welspun Energy. The investment gives ADB a 13.3% holding in the company.
Also DEG, the subsidiary of German government-owned development bank KfW, has subscribed to the CCD's of the company worth INR 2,200 Mn, taking the total amount raised by the company to INR 5,300 Mn, the largest funding received by any cleantech firm.
The investment has received nod from the Foreign Investment Promotion Board.
Through this project, ADB hopes to develop and commission a portfolio of 200 MW of solar photovoltaic power projects and 100 MW of wind power projects and take the total operational projects to 600 MW by March 2016.
As of November 2013, WREL had 309 MW of operational projects (289 MW of solar projects in Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, and Rajasthan; and 20 MW of wind projects in Rajasthan), 211 MW of projects under construction (119 MW solar and 92 MW wind), and a pipeline of 1.2 GW of projects at various stages of development.
Recently @GEEnergyFinancial had invested $24 Mn in 151 (DC)-megawatt solar photovoltaic power project of Welspun Renewable Energy Limited.
Other solar projects under Welspun includes 60 MW Solar plant, Tamil Nadu; 55 (DC) MW Solar Plant, Rajasthan; 34 MW (DC)Solar plant, Punjab; 20 MW (DC) Solar PV Project, Maharashtra; 19 MW (DC) Solar Plant, Karnataka.
India has been increasing and boosting its investment in the renewable energy sector as the country is targeting 20% of energy generation from renewable sources by 2020.
The ADB has a target of investing as much as $2 Bn a year in clean energy in the region to help meet increasing power demand. Previously the regional bank had funded a solar project of Reliance Power (RPWR) Ltd. by extending a loan of $103 Mn in 2012.