Solar power producer, Azure Power, is planning to invest about $3.7 billion by the end of financial year 2024-25, the company said in an investor briefing. According to its capex forecast, it will make investment in a range between $2.6 billion and $3.7 billion from 2020-21 to 2024-25, with the highest being $9 billion in FY21.
The New Delhi-based firm also said it is not entering into manufacturing but has partnered with Waaree Energies — one of the largest solar manufacturers in India — for 500 MW capacity and closed discussions with another manufacturer for another 500 MW.
“Our total equity investment in manufacturing is totaling less than one per cent of total capital expenditure,” it said.
The company is also taking cost cutting initiatives to drive lower capex. It added that it has exited 450 MW of contracts which did not meet minimum thresholds and is in discussions to exit another 150 MW of projects that do not meet minimum return thresholds.
Azure Power had recently won a 4-GW project to develop grid-connected solar generation capacity, expected to be commissioned by 2022 and completed by 2025.