The Asian Development Bank (ADB) has invested US$50 million in India’s Welspun Renewables Energy Pvt. Ltd. (WREPL).
According to sources, the deal would represent a 25% stake in the renewable energy unit. According to the ADB the deal could had been finalised in December last year.
This would be ADB’s largest investment in the renewable energy sector. ADB has set a target of investing as much as US$2 billion a year in clean energy in India to help meet increasing power demand.
Welspun Renewables Energy will use the financial support from ADB to catalyze private equity investment and facilitate a future Initial Public Offering (IPO).
Welspun Renewables Energy plans to add more than 100MW of wind power projects and 200MW of solar power projects by March 2016. This plans will double its solar and wind capacity to at least 600MW.
The project, part of WREPL’s 308MW operational solar portfolio, is located on an 800-acre site in Neemuch, which sits on a 500-meter-high barren land in the state of Madhya Pradesh. The site receives among the highest levels of irradiation in India.