The India-based company says it has secured long term financing worth INR 8.85 billion (around 124.3 million, US$161.7 million) from a consortium of "leading" financial institutions. The Central Bank of India has been appointed lead lender and facility agent for the consortium.
Work on the 130 MW photovoltaic project is already underway in the Neemuch district of Madhya Pradesh. It is scheduled to be completed by next May. Welspun subsidiary, Welspun Solar Madhya Pradesh Private Limited (WSMPPL) won the project after bidding last May with a tariff of INR 8.05/kWh (around 0.11, $0.15).
Commenting, Vineet Mittal, co-founder and MD 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 [sic], we have consistently demonstrated that solar tariff can be brought to grid parity in a span of two years."
He added, "Through the continued support of our financial partners, we are confident that the 130 MW project will be commissioned as per committed timelines and deliver better PLFs than designed."
Welspun has said it aims to commission 1.75 GW of solar and wind projects over the next few years.