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Welspun Energy’s solar project completes Rs 65 crore financial closure

According to reports, renewable energy company Welspun Energy Ltd has completed the financial closure for its proposed 7 MW solar power plant in Chitradurga district in Karnataka.

The company, part of the $ 3.5 billion Welspun group has received Rs 48.75 crore from a financial institution, to finance the project. The project cost of Rs 65 crore has been sourced in a debt – equity ratio of 3:1. The project, developed by the company’s subsidiary Welspun Solar Kannada Pvt. Ltd. is entitled benefits under the Karnataka State Policy.

A statement from the company said ground work for the project was in progress. As per the power purchase agreement signed with Mangalore Electric Supply Company (MESCOM) the power plant needs to begin commercial operations by March 2014.

A part of the power plant will use trackers, devices that will orient the solar panels towards the sun as it moves, in order to increase power generation. Trackers will be used for 1 MW capacity, of the total project capacity of 7 MW, the statement said.

This project will generate 12.264 million kilowatt-hour of power annually, enough to power 33,600 households and mitigating 11,651 tons of carbon emissions annually, the company statement said.

Meanwhile, Welspun has also secured funding for a 20 MW solar power plant in Solapur, Maharashtra. About Rs 135 crore will be sourced through a consortium of financial institutions, the company said.

Welspun currently has more than 300 MW clean energy capacity on-ground, of which 111 MW are operational.

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