Welspun Energy to invest US$1.6 billion in RE projects

It will commission the world's second largest solar power plant.

Indian independent power company Welspun Energy, Ltd will invest the additional amount in new solar and wind projects over three years. It will commission the world's second largest solar power plant and two other projects this December.

The 151 MW solar plant in the Indian state of Madhya Pradesh is a part of Welspun's push to capture a slice of the renewable energy market the government hopes will nearly double in the five years to 2017.

Managing Director Vineet Mittal believes that banks should create a separate sector lending cap for renewable energy to avoid RE being lumped together with lending to thermal power projects,

Banks have become increasingly unwilling to lend to Indian infrastructure builders coping with heavy debt and stalled projects.

"The risk-reward here is totally separate than a conventional power plant, so it has to be looked at differently. I think the government is consciously trying to do something, but it's still not very effective, so availability of the funding is very, very critical," Mittal said.