MAHINDRA TO EXPAND RENEWABLES BUSINESS AMID INDIA’S CLEAN ENERGY PUSH
Indian conglomerate Mahindra Group plans to expand its renewable energy business and invest 45 billion rupees over the next three to four years. The group also plans to commission 500 megawatts (MW) of solar power projects by the end of March 2016 from 180 MW it expects to complete by end-March this year.
The investment will mainly be financed by taking on 33 billion rupees in debt, with the rest funded through cash.
“The (renewable energy) business is going to boom this year. It is a very attractive investment right now,” said Anand Mahindra, Chairman and Managing Director, Mahindra Group.
The renewable energy unit, which builds solar power projects and offers off-grid power solutions, was formed in 2011 and is currently one of the smaller businesses of the $17 billion autos-to-technology conglomerate.
Prime Minister Narendra Modi has ramped up his target for solar energy by 33 times to 100,000MW by 2022. Modi says India needs $200 billion to meet its target and US President Barack Obama pledged during his recent visit to India to support this ambitious goal through additional funding.
First Solar’s biggest projects in India include a plant with local firm Kiran Energy Solar Power and the Mahindra Solar One plant.
Companies such as US-based First Solar and SunEdison Inc already have sizeable businesses in India, while Canadian Solar, China’s JA solar and JinkoSolar Holdings are planning to invest in the country.