Adani Group Announces Monumental Investment of Rs 2.3 Lakh Crore in Renewable Energy and Manufacturing

• ByStartupStory     |    April 8, 2024

In a bold move towards sustainable development, the Adani Group has unveiled plans to invest approximately Rs 2.3 lakh crore by 2030, marking India’s most ambitious expansion in renewable energy and solar and wind manufacturing capacity to date. Despite recent challenges, including a short-seller attack, the conglomerate remains steadfast in its commitment to rapid growth.

Adani Green Energy Ltd, the nation’s largest renewable energy company, is set to spearhead the investment, allocating around Rs 1.5 lakh crore towards expanding capacity for solar and wind power generation. A top official revealed plans to elevate capacity at Khavda in Gujarat’s Kutch to an unprecedented 30 gigawatts, up from the current 2 GW. An additional investment of Rs 50,000 crore will be directed towards similar projects across the country.

Vneet S Jaain, Managing Director of AGEL, emphasized the scale of the endeavor, stating, “We have just now commissioned 2,000 MW (2 GW) of capacity at Khavda and plan to add 4 GW in the current fiscal and 5 GW every year thereafter.”

In a parallel initiative, Adani New Industries Ltd (ANIL) will inject close to Rs 30,000 crore into expanding solar cell and wind turbine manufacturing capacity at Mundra, Gujarat. Jaain, who also serves as a director on ANIL’s board, outlined plans to boost cell and module manufacturing facilities to 10 GW by 2026-27, up from the current 4 GW.

The Adani Group’s capital expenditure outlay for the 2024-25 fiscal year stands at Rs 1.2 lakh crore, reflecting its unwavering commitment to sustainable growth across diverse sectors. This monumental investment underscores the conglomerate’s alignment with India’s goal of generating 500 GW of electricity from non-fossil sources by 2030, as part of a broader strategy to achieve net-zero emissions by 2070.

The centerpiece of Adani’s renewable energy vision is the Khavda project, poised to become the world’s largest renewable energy undertaking. Spanning 538 square kilometers, the project aims to generate a staggering 81 billion units at peak capacity, equivalent to powering entire nations such as Belgium, Chile, and Switzerland. Jaain revealed that of the planned 30 GW capacity at Khavda, 26 GW will be solar and 4 GW will be wind.

AGEL’s existing operational portfolio, which includes solar, wind, and wind-solar hybrid capacity, currently stands at 10,934 MW. This substantial contribution to India’s renewable energy landscape powers over 5.8 million homes and avoids approximately 21 million tonnes of carbon dioxide emissions annually.

Despite recent challenges, including allegations of share price manipulation and accounting fraud, the Adani Group remains resolute in its mission. Chairman Gautam Adani affirmed the group’s financial robustness, stating, “Our balance sheet is healthier than ever before.”

In the wake of adversity, Adani has demonstrated resilience, assuring investors and bondholders through strategic measures. Now, with renewed vigor, the conglomerate is forging ahead with its expansion plans, including strategic partnerships with industry peers like Reliance Industries Ltd.

The Adani Group’s monumental investment reaffirms its position as a trailblazer in India’s transition to sustainable energy and underscores its unwavering commitment to driving economic growth while mitigating environmental impact.

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