Adani Group, a global infrastructure player, has decided to invest Rs 5,000 crore in Tamil Nadu to set up a 700 mega watt (MW) power generation capacity based on solar. This is part of Adani Group’s plan to set 10,000 mega watt (MW) ofsolar power by 2022 across the country.
A senior source in the Group confirmed the development and said in the next 15 days the company will sign a PPA with the State Electricity Agency. The Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) will procure the entire produce for Rs 7.01 per unit for the next 25 years.
State Government and TANGEDCO officials have also confirmed that the company is setting up power generation plant in different phases. Sources close to the group added originally Adani Enterprises one of the subsidiary was even planning to set up a solar park, including panel manufacturing facility, but for now it was decided to only with power generation capacity.
Sources also added the company must commence supplying the power to the grid before March 2016.
Construction activities are expected to commence from next month for the new 700 mega watt (MW) solar power project in the district of Ramanathapuram, Tamilnadu. By February 2016, Adani is confident that the facility will be ready. While around 70 per cent of the investment will be funded through internal accruals, the balance will be funded through debt and institutional investors.
Post the application, TANGEDCO has recently cleared the load flow studies for evacuation of the power generated from the Solar project. The company is in the process of completing the formalities for execution of the Power Purchase Agreement which will be done in due course of time.
The favourable industrial environment prevailing in the State of Tamil Nadu and the demand of ever growing power requirements has attracted the interest of Adani in the State to set up this Solar Power Project, said sources in the group.
Adani Group has set a target of achieving 10,000 mega watts (MW) of solar power by 2022 and setting up this power project is in line with achieving this target. The company is in the process of setting up a 5000 MW solar plant inside its upcoming solar park in Rajasthan. the company already operating a 40 MW solar PV plant at Gujarat.
Adani Power is India’s one of the largest private thermal power generating company in private sector in India with an installed base of 10,480 MW.