Azure power to invest INR 750 crore in Gujarat

Azure Power, an independent power producer plans to pump in around INR 750 crore for solar power generation and equipment manufacturing in Gujarat over the next three years. The company is already in the process of setting up 15 MW solar power plant in the state.

Azure Power has selected Modasa area in Sabarkantha district to develop 15 MW solar photovoltaic power project involving an investment of around INR 215 crore. Apart from this, the company is also planning a solar power equipment manufacturing unit in Gujarat, for which it intends to infuse approximately INR 300 crore. The proposed manufacturing unit will manufacture PV modules, structures and cables.

Mr Inderpreet Wadhwa CEO of Azure Power said that "Azure Power intends to pump in INR 2,000 crore over the period of next three years across India, of which INR 1,500 crore would be for power generation and INR 500 crore for equipment manufacturing. Gujarat alone will have INR 750 crore investment from the company.”

The company, which already has operationalised India's first private MW scale solar power plant in Punjab, has inked a 25 year power purchase agreement with Gujarat government. Its 15 MW power plant is expected to be commissioned by mid 2011. In addition to this, another solar power project in the state is also on company's radar.

The company is eyeing a combined production capacity of 50 MW by 2012 and 100 MW by 2015.In order to raise funds for its projects, the company is also planning a public issue and it may also divest further stake to private equity players. Azure Power has tied up with SMA Solar Technology, SunEdison and SunTech for supply of PV inverters, monitoring technologies and PV modules respectively.