Adani wins world's largest solar project; to invest Rs 45,000 cr

Adani Green Energy won a major tender to set up 8 Gigawatt (GW) of manufacturing-linked solar energy projects with an investment of Rs 45,000 crore (US$ 6.38 billion).

Mr Gautam Adani, the chairman and founder of the Adani Group, said that the group is looking for potential equity and strategic partners for solar equipment manufacturing, where technology is changing at a fast pace. The group has a track record of being the only Indian business house with a series of 50:50 ventures with international players such as Total and Wilmar.

Adani Green Energy aims to become the world leader by 2025 with a capacity of 25 GW, which will exceed the thermal capacity of Adani Power that would be 18-20 GW by then, he said.

The latest project consists of 8 GW of solar power and 2 GW of solar cell and module manufacturing capacity. It is expected to create 400,000 jobs.

He added that the country was rapidly moving towards self-reliance in the sector. “The 90 per cent import of Chinese equipment will fall to 50 per cent, and ultimately zero. In 3-5 years, it will be negligible,” Mr Adani said.

He is positive about investment in the expansion to become world’s top company.

“Our financial planning is fully geared up to raise funds to achieve 25 GW. Adani Green is the only renewables company outside the OECD countries which has a sovereign rating. International rating agencies know our track record and our abilities,” he said.

The group’s target is in aligned with the country’s aim formulated by the Prime Minister, who initially set a target of 175 GW by 2022 and raised it to 450 GW of renewable energy by 2030.

“You have to realise that you need to pay some more price to build up the capacity. So as a country, we have to be prepared to pay a little more for self-reliance. How to pay? The government cannot give cash incentives, so there has to be policy intervention such as safeguard duty, anti-dumping duty, customs duty,” Mr Adani said. In the latest tender, the Government allowed 15-20 paise higher tariff for projects using local equipment.

“This 15-20 paise is not a permanent feature. Once you have capacity, you can also compete with China. But initially, you have to sacrifice somewhere,” he said.

Although, the company had successfully bid for the project on its own but may get in partnership for manufacturing. “Technology is also changing fast. It is better to bring in a good global giant, who also wants India as a market. We are working on bringing in partners,” he said.

“Whoever wants to come to India will find a good partner in Adani. We have several 50:50 ventures. It is unique how we manage partnerships. Like the 22 years of Adani-Wilmar partnership — it is running beautifully. We are so proud of having our partners. No other group has such longstanding partners, that too 50:50, not 51:49. We know how to nurture and respect partners, how to work and deal with partners.”

Adani added that Indian entrepreneurs, ranging from street vendors to big industrialists, were resilient enough to bounce back from the COVID-19 pandemic although the lockdown had created uncertainty and many companies had invoked the ‘force majeure’ clause.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.