Welspun to set up 100 MW solar plant in Tamil Nadu.

Welspun Renewables has signed a power purchase agreement (PPA) with the Tamil Nadu Generation and Distribution Corporation (Tangedco) for setting up a 100-MW solar project in the State.

Welspun's 100 MW is among the 146-MW worth of PPAs the Government has signed so far under the existing solar power purchase programme.

Under the scheme, the developers who set up projects before September will sell their power to Tangedco at a rate of Rs. 7.01 a kWhr.

Welspun wanted to do more - a figure of 300 MW has been indicated.

But like many other solar power developers (such as American company SunEdison), Welspun fears it may not be able to complete more projects within the September deadline.

Several developers have asked for an extension of the deadline, on which the state Electricity Regulatory Commission (TNERC) will have to take a call.

Many in the solar industry are of the view that TNERC might extend the deadline till March 2016.

TNERC gave its mandatory approval to the draft PPA only in late January.

Among the other companies who have signed PPAs are the jeweller GRT (15 MW) and the Andhra-based SSNR Power (10 MW).

Meanwhile, there are reports that the Adani Group has been examining the possibility of setting up a large, perhaps 1,000 MW, solar plant in the State.

Industry observers believe the group might be wanting to make an announcement in this regard at the Global Investors' Meet to be held on May 23-24.

HBL