ADB proposes equity investment in welpsun renewables to the tune of USD 50 K...

 

Asian Development Bank has released a Project Data Sheet (PDS) under which it has proposed to invest in Welspun Renewables Energy Limited's (WREL) projects on Solar and Wind Power Development.

 

As per the PDS, ADB may invest around USD 50,000 into the company in the form of Equity investment.

As said by the ADB

WREL is one of the leading renewable power developers in India. As of November 2013, WREL had 309 MW of operational projects (289 MW of solar projects in Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, and Rajasthan; and 20 MW of wind projects in Rajasthan), 211 MW of projects under construction (119 MW solar and 92 MW wind), and a pipeline of 1.2 GW of projects at various stages of development. The project will help the company reach at least 600 MW of operational projects by March 2016.

ADB proposes the said investment based on the following criteria:

• The project is consistent with ADB's Strategy 2020.
• It relates to two of the strategy's five core pillars: infrastructure and environment. The strategy calls for ADB support to clean energy development to meet growing energy demands in a sustainable manner.
• The project will also contribute to ADB's operational goal of scaling up private sector development. The project is also aligned with the India country partnership strategy, 2013 2016, which calls for the expansion of clean and renewable energy development (solar, hydro, wind, biomass) and more commercial approaches to support the deployment of advanced, energy efficient, and renewable energy technology including solar and wind energy.

With the project pertaining to expansion of clean and renewable energy and thereby contributing to climate change mitigation efforts by reducing greenhouse gas emission, ADB requires WREL to adopt an environmental and social management system (ESMS) satisfactory to ADB prior to ADB's investment.

While Welspun has agreed to develop its capacity, as desired by ADB, to oversee the ESMS implementation at the corporate and project level, the project proponent will also comply with ADB's Social Protection Strategy and report to ADB on measures taken to ensure the same.

The PDS as released by ADB can be accessed here.