India's largest solar power developer Welspun Group has bagged an order for $225 million for a 125 MW solar photovoltaic project to be set up on barren tract of land in Mandsaur and Neemuch district of Madhya Pradesh in 18 months.
Welspun Energy Managing Director Vineet Mittal said, "We bid Rs.8.05 per unit to bag the 125 MW, out of 200 MW that was auctioned by the Madhya Pradesh Government."
After the formal award of the project, Welspun Solar Madhya Pradesh Pvt. Ltd. will put up one solar photovoltaic project of 100 MW and another of 25 MW capacity.
The project would be funded in 75:25 debt-equity ratio, he said, adding that typically, a solar power project costs Rs.9-10 crore per MW.
"Solar energy will become a game-changer and I expect it will reach grid parity by 2015,"he said. Grid parity means solar power tariff equaling that of thermal power.
Madhya Pradesh Government conducted the auction through 'reverse bidding' process under which it would award projects to those who offer to sell power at the best (least) rates.
Mittal said Welspun Energy plans to add around 250 MW in the new and renewable energy projects during the current fiscal. By 2015-16, it is targeting a portfolio of 1,750 MW, 60 percent of which will be wind energy and the remaining 40 percent solar power projects.
The company currently operates 30 MW of solar power plants in Gujarat, Andhra Pradesh and Rajasthan and recently bagged a 50-MW solar power project in Jawaharlal Nehru National Solar Mission (JNNSM) bidding.
The company plans to set up solar photovoltaic farms with a total capacity of 100 MW in Andhra Pradesh and has signed agreement to set up 500 MW of wind power projects in the state.
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