ADB Supports Hydro and Wind Power Plants in India with Equity Investment
NEW DELHI, INDIA - The Asian Development Bank (ADB) is investing $30 million equity in NSL Renewable Power Private Ltd. (NRPPL), a leading renewable energy company in India, to support hydropower and wind power projects that will generate 530 gigawatt-hours every year, and reduce carbon dioxide emission by 400,000 tons annually from 2017 onward.
"India will increasingly need renewable energy to drive its development, and the private sector will play a central role in developing the renewable energy sector to help the country achieve green growth," said Lakshmi Venkatachalam, ADB's Vice President for Private Sector and Cofinancing Operations.
ADB's investment will help NRPPL reach its target of 1,000 MW of operational renewable energy assets by 2017. NRPPL will use the investment proceeds to partially finance the construction of the 100-megawatt Tidong run-of-river hydropower project in Himachal Pradesh, and the 75-megawatt Chilarewadi wind project in Maharashtra.
This is ADB's first equity investment in a private sector renewable power generation company in India and ADB's first private sector assistance to India's hydropower sector. The investment agreement between ADB and NRPPL was signed today in the run up to ADB's 46th Annual Meeting in Delhi.
India's economic growth requires energy, yet the availability of indigenous conventional fuels is diminishing, meaning the country has had to import increasing quantities of coal and liquefied natural gas, making it vulnerable to imported fuel price volatility.
NRPPL is one of India's leading renewable power companies. The company belongs to the NSL group, which includes Nuziveedu Seeds Limited, the largest seed company in India. As of end 2012, NRPPL had 185 megawatts of operational projects (including hydro, wind, biomass and solar power projects), with an additional 336 megawatts of renewable power under construction or in advanced development.