Mahindra Group has announced its plan to expand its renewable energy arm by injecting investment worth Rs. 4500 crore in coming 3 to 4 years. G0vernment of India under its policy; encouraging increase in the use of clean energy; be it solar, wind etc.
About Rs. 3300 crore will be raised through debt and the balance would be financed internally.
The company has plans to complete 180MW of solar power projects by March 2015, against its target to commission 500MW of solar projects by March next year, informed Mr. Anand Mahindra (Chairman and Managing Director).
Mr. Anand Mahindra also expressed that this year “The (renewable energy) business is going to boom and currently is a very attractive investment proposition. Since the target for solar energy has been set at 1,00,000 MW by 2022 to meet the rising demand. Total of about $ 200bn would be needed. Almost half of the investment is expected from foreign companies.
The U.S. President Barack Obama during his recent visit to India has expressed willingness to support this target through additional funding if required.
U.S.-based First Solar and SunEdison Inc are already operating in India with sizable existence. Canadian Solar, and Chinese companies, JA solar and JinkoSolar Holdings also plan to invest in the country’s renewable energy sector.
Formed in 2011, the renewable energy arm of the $17 billion group engaged in building solar power projects and offers off-grid power solutions too.