Surat (Gujarat) [India], January 6: KP Group, a leading player in the renewable energy sector, has signed two Memorandum of Understanding (MoU) with the government of Gujarat to invest Rs. 17,690 crores in the state. The investment is earmarked for different renewable energy projects including setting up a green hydrogen plant.
The MoUs were signed in the presence of Chief Minister Bhupendrabhai Patel and senior ministers in Gandhinagar on Wednesday ahead of the 10th edition of the Vibrant Gujarat Global Summit, slated to take place from January 10 to 12.
As per the first MoU, KP Group proposed to invest Rs. 16,690 crores for 2,675 MW wind, solar and hybrid power projects at multiple locations in the state. These projects are expected to create 13,000+ direct and indirect jobs. Additionally, KP Group also signed a second MoU, pledging investment of Rs. 1,000 crores for developing the group’s first green hydrogen plant. The plant is expected to become operational next year.
Commenting on the development, Dr Faruk G Patel, Chairman and Managing Director of KP Group, said, “It is our privilege to sign MoUs for 2.6+ GW of solar, wind and hybrid power projects in Gujarat with the government of Gujarat. These MoUs mark a significant stride towards powering India’s green energy future by decarbonising the economy and reducing the country’s dependence on fossil fuel imports. These projects are scheduled to initiate operations from 2024 to 2026, solidifying KP Group’s prominent role as a frontrunner in the Indian renewable energy sector. Additionally, these ventures are poised to emerge as significant economic catalysts in the state, fostering the creation of thousands of new jobs.
As part of the MoUs, KP Group company, KPI Green Energy, will establish a 250 MW solar park in Bharuch with an investment of Rs. 1,000 crores and a 200 MW solar park in Kutch with an investment of Rs. 800 crores.
The group will invest Rs. 1,875 crores for a 250 MW wind park in Surendranagar and Bhavnagar and a further Rs. 5,500 crores for a 500 MW hybrid park in Bharuch, Bhavnagar and Kutch, 475 MW wind park in Kutch and Devbhumi Dwarka with an investment of Rs. 3,565 crores. KP Group will also allocate Rs. 1,700 crores for a 1,000 MW hybrid solar park in Kutch and a world-class fabrication plant with an investment of Rs. 2,250 crores in Bharuch.
The new agreements mark a renewed commitment to sustainable development and build on KP Group’s continued success from the earlier Vibrant Gujarat Global Summit editions. Notably, KP group has entered into MOU’s and successfully completed various projects including Solar Parks in Bharuch district.
The recently signed MoUs closely follow the financial strides of KPI Green Energy, (market capitalization of Rs. 5,998+ crores as of January 1, 2024) which recently raised Rs. 300 crores through a Qualified Institutional Placement (QIP), issuing shares to Qualified Institutional Buyers (QIBs). With an impressive order book exceeding 750 MW, KPI Green Energy targets the ambitious goal of reaching 1 gigawatt by 2025. In parallel, KP Group is ambitiously marching towards achieving 10 gigawatts by 2030. Notably, KP Group’s second listed entity, KP Energy, holds a market cap of Rs. 1,724 crores as of January 4, 2024.