An Indo-US consortium comprising Hyderabad-based Premier Solar group and Chicago-headquartered renewable energy major New Generation Power, is to set up solar farms in Andhra Pradesh. The consortium plans to invest $400 million in the next couple of years,
The consortia has bagged projects to implement 70 MW capacity, under the AP Solar Policy. It is in the process of finalising another 245 MW.
In the first phase, the consortia will install 70 MW in 14 locations in Andhra Pradesh. “Funds have been tied up and the execution should be completed over the next 12 months,” said Karthik Polsani, CEO of Premier Solar. The company is negotiating low cost funds from financial institutions and strategic investors from the US.
The consortium has signed a power purchase agreement with the AP Government for 20 years. Development work for the first phase has begun. The Mumbai-based WAREE Group and Premier Solar are the joint EPC contractors for the project.
NGP, promoted by India-born Chirinjeev Kathuria, will hold 74 per cent in the joint venture and Premier Solar the balance. There will be a few more partners as the project progresses, Karthik told Business Line .
NGP is a diversified global developer, investor, owner and operator of energy infrastructure assets with focus on renewable energy. It is currently developing grid scale projects in Africa, Europe, South America and the Caribbean. Kathuria’s firm provided funding to Russia’s Mir Space Station and unsuccessfully bid for NASA’s International Space Station supply contract more recently.
Premier Solar Group, started in 1995, has commissioned a 14 MW plant in Jharkhand under the Jawaharlal Nehru National Solar Mission. It is also building a 5 MW unit in Zaheerabad and another 2.5 MW one for Pennar Group, he said.