Azure Power announced it has received a letter of intent for a 6 MW solar project won an auction conducted by Odisha Renewable Energy Development Agency (OREDA) for Hindustan Aeronautics Limited (HAL). The capacity won is 100% of the total capacity allocated. Azure Power expects to sign a 25-year power purchase agreement with HAL which has a domestic debt rating of AAA by CRISIL, a S&P company, at a tariff of INR 3.13 (~US 4.6 cents) per kWh. The project will be developed by Azure Power within HAL estate area of approx 30 acres. HAL is a major domestic supplier of aviation equipment to the Indian defence sector and is governed under the management of the Indian Ministry of Defence.
Speaking on this occasion, Mr Inderpreet Wadhwa, Founder, Chairman and Chief Executive Officer said, “We are pleased to announce our win with HAL and with this, we continue to demonstrate our strong project development, engineering, and execution capabilities. We are delighted to make this contribution towards the realization of our Hon’ble Prime Minister’s commitment towards clean and green energy, through solar power generation.”
Azure Power has been among the most active participants in solar power auctions since the beginning of the solar power market in India and the majority of the Company’s portfolio are with customers that have some of the best credit ratings in India, most of which are backed by the Government of India.