Welspun Energy secures credit facility of $22.9m for Indian solar project

Indian renewable energy company Welspun Energy has secured credit facility of INR1.35bn ($22.9m) to finance the development of its solar project in Maharashtra.

According to a statement, financial investors have assured long-term facility with debt and equity ratio of 75:25, reported The Economic Times citing PTI.

The company through its subsidiary Welspun Energy Maharashtra (WEMPL) is investing a total of INR1.8bn ($30.5m) for the 20MW project planned in the city of Solapur.

Welspun Energy co-founder and managing director Vineet Mittal said with support from investors, the company is equipped to conclude the project within budget and timeframe.

“Welspun Energy’s growth is in response to our conviction that renewables will be the source of future clean and inexhaustible energy,” added Mittal.

The company, meanwhile, has inked a memorandum of understanding (MoU) with Brihan Mumbai Electric Supply and Transport Undertaking (BEST) to sell green energy to Mumbai city. Through this agreement BEST will procure 28 million units of solar energy per annum.

Estimated to power nearly 96,000 households, the project will mitigate Maharashtra’s annual electricity deficit of 14.8%.