Welspun Energy reported that it will commission the world’s second-largest solar power plant and two other renewable energy projects by December 2013.
With the investment, the company plans to double the production at its 151MW plant located in the central Indian state of Madhya Pradesh by 2017.
According to the company, the renewable energy companies are free of some of the obstacles like coal and gas shortages as well as fuel transport hassles that are affecting the country’s thermal power industry.
Welspun Energy managing director Vineet Mittal was quoted by Reuters as saying that the Banks should create a separate sector-lending cap for renewable energy to avoid it being considered with par to thermal power projects.
"The risk-reward here is totally separate than a conventional power plant, so it has to be looked at differently," Mittal said.
"I think the government is consciously trying to do something, but it’s still not very effective, so availability of the funding is very, very critical."
The Welspun Energy plans to attain solar and wind power generation capacity of 1,700MW by 2017, representing an eight-fold increase compared to the current capacity.
