Welspun Energy Ltd has tied up finances to set up a 50-MW solar power project in Rajasthan.

Announcing the financial closure for the project, the company said it has secured a long-term project funding of Rs 355 crore from a consortium of lenders comprising three public sector banks and one infrastructure finance firm.

Welspun had in January this year signed a power purchase agreement (PPA) with NTPC Vidyut Vyapar Nigam Ltd — power grading arm of the state-owned power producer NTPC.

The 50-MW solar project in Rajasthan “is expected to be commissioned in the first quarter of 2013”, the company said in a statement here.

Allocation of solar PV projects in Phase-1 of Jawaharlal Nehru National Solar Mission was done in two batches over two financial years — 2010-2011 and 2011-2012.

“Welspun Solar AP Pvt Ltd, a subsidiary of Welspun Energy, emerged as the only successful bidder for the 50 MW, the maximum capacity allowed for a single bidder,” the statement said. “The weighted average tariff of Rs 8.05 per unit quoted by the company was one of the lowest quoted at the time“.

Welspun Energy Managing Director Vineet Mittal said: “The quick financial closure reinforces the faith and support of the financial sector in Welspun Energy’s credibility and unmatched skill at project execution, commissioning and power generation.

“As the leading producers of highly competitive clean and green power, it is our aim to achieve grid parity within the next few years and establish the value of renewable energy to India’s energy security,” he said.

Welspun Energy, which already has presence in Rajasthan, Gujarat, Madhya Pradesh, Karnataka and Andhra Pradesh, is exploring opportunities in other states including Uttar Pradesh, Tamil Nadu, Orissa and Chhattisgarh.

It is further adding a capacity of over 250 MW solar projects by the end of 2013, making it one of the largest solar independent power producers in India.

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