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The Adani Group has decided to invest Rs 5,000 crore for establishing 700-Mw solar power generation capacity in Tamil Nadu.
The investment is part of the group’s long-term goal to establish 10,000-Mw solar generation capacity across the country by 2022.
A senior source in the group confirmed the development and said the company would sign a power purchase agreement with the state power utility in the next forthnight.
It is learnt Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) would purchase the entire power from the project at Rs 7.01 a unit for the next 25 years.
State government and Tangedco officials confirmed the group was setting up the plant in various phases in Ramanathapuram district. Construction activity is expected to commence from next month.
Sources close to the group added one of the subsidiaries of Adani Enterprises had even planned to set up a solar park, including panel manufacturing facility, in the state. However, it had now limited its engagement to solar power generation. Sources also added the company would have to commence supplying the power by March next year. The group is confident the facility would be ready by February next year.
While around 70 per cent of the investment in the project would be met through internal accruals, the balance would be funded through debt and from institutional investors.
A favourable industrial environment in the state and the growing demand for power has attracted the Adani group to set up solar project, said sources.
The company is in the process of setting up a 5000-Mw solar plant in its upcoming solar park in Rajasthan. It operates a 40-Mw solar PV plant in Gujarat. Group company Adani Power is among the largest thermal power generators in private sector, with an installed 10,480 Mw capacity.
In 2012, the Tamil Nadu government had launched the solar energy policy, which called for the development of 1,000 MW of utility-scale, rooftop and renewable energy certificate (REC) projects annually through 2015.
The state has so far managed to achieve only five per cent of the set target of installing 3,000-Mw solar power in the next two years. Tangedco recently signed 631-Mw solar PPAs, with the grid connection scheduled in March 2016. Another 2,200-Mw is also likely to be feasible, according to its officials.
To attract more investments in solar generation, the Tamil Nadu government had sought the renewable energy ministry a hike in capital subsidy for off-grid and grid solar PV system from 100 Kw to 500 Kw.
