Asian Development Bank backs Indian renewable energy companyJune 26, 2014
Bank invests in India’s Welspun Renewable Energy
The Asian Development Bank has made a significant investment in Welspun Renewable Energy, an energy organization operating in India. Welspun currently boasts of a total capacity of 309 megawatts in its renewable energy capacity throughout India, an additional 200 megawatts worth of new projects currently under construction and 1.2 gigawatts worth of projects in various stages of development. The investment from the Asian Development Bank gives the bank a 13.3% stake in Welspun.
India continues to prove itself to be a very active clean energy market
India is becoming a very active renewable energy market. Recent changes in the national government have brought more attention to the clean energy sector, spurring new investments and paving the way for clean energy projects to begin construction throughout the country. Solar energy, in particular, has managed to attract a great deal of attention in India because of the country’s exposure to solar radiation. Wind and hydropower are also becoming popular targets of support for many organizations interested in the Indian energy sector.
Asian Development Bank invests $50 million in Welspun, taking a 13.3% stake in the energy company
Welspun has received an investment of $50 million from the Asian Development Bank. The company has also raised an additional $35 million through the sale of debentures to KfW, a development bank based in Germany. The funding will help the company advance its various renewable energy projects as well as other business interests. Welspun may be considering launching an initial public offering at some point in the relatively near future and the Asian Development Bank is likely to support such an endeavor.
Clean energy companies play a vital role in the future of India’s transition toward clean energy and sustainability
The Indian government is showing strong support for clean energy and has plans to become more environmentally friendly through the adoption of energy efficiency policies and emissions reduction initiatives. Companies like Welspun are currently quite vital to India’s energy transition, as these companies are responsible for the majority of the clean energy projects that are taking root throughout the country.