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Multilateral development finance agency Asian Development Bank (ADB) has signed an agreement to make an equity investment of $50 million in Welspun Renewables Energy Ltd, according to project documents posted on the ADB’s website.

While the quantum of stake being acquired is not disclosed, separate media reports said ADB is picking 25 per cent in the privately held firm.

Welspun Renewables, part of the Welspun Group, will use the money to double its solar and wind capacity to at least 600 megawatts by March 2016, the projects documents showed.

In April, GE Energy Financial agreed to invest $24 million in Welspun Renewables’ solar photovoltaic power project at Neemuch in Madhya Pradesh.

Earlier last month, NSL Renewable Power Pvt Ltd (NRPPL), a part of the Hyderabad-based NSL Group, signed an agreement with the ADB to raise $30 million to fund its hydro and wind power projects.

Previously, the lender had extended loans to a solar project owned by Anil Ambani-owned Reliance Power Limited and funded upgrades of power transmission infrastructure to help solar plants sell electricity.

The ADB has set a target of investing as much as $2 billion a year in clean energy in the region to help meet increasing power demand in the country.

(Edited by Joby Puthuparampil Johnson)

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