Adani Enterprises today announced that it proposes to commence construction of two major solar projects in Australia next year, each with an output of 100-200 MW.
"The largest generator of solar energy in India, the Adani Group has taken its first steps towards replicating that ranking in Australia," Adani Enterprises said in a filing to BSE.
Land agreements are in place for the projects in South Australia and Queensland, and Adani has commenced the design and tendering phases for both projects, it said.
Adani aims to develop renewable energy projects in Australia with a total capacity of 1,500 MW within the next five years.
Adani has constructed approximately 793 MW of solar plant in India till date, including one of the world's largest solar plants in Tamil Nadu which has a capacity of 648 MW.
Adani has a pipeline of a further 1,225 MW in construction or late development phase in India.
Generation of solar energy is part of Adani's global strategic balanced approach to power generation with its fleet of coal-fired, solar and wind plants supporting the energy policies of the nations in which Adani operates.
The Australian solar projects are in addition to Adani's USD 16.5 billion investment in the planned Carmichael coal mine in Queensland's Galilee Basin a well as rail and port facilities.
The company's head of Australian operations, Jeyakumar Janakaraj, said that these projects will offer a solid foundation to Adani's renewable energy business in Australia and will contribute to meeting Australia's renewable energy target commitments.
"Coupled with the company's $3.3 billion dollars of investment to date across its mine, rail and port projects in Queensland, Adani's plans to pursue solar investment opportunities reflect the confidence the company has in the Australian market," Janakaraj said.
"This reflects both Adani's commitment as a diversified energy and infrastructure company in India and a leading solar generator in that market, and the company's plans to build a long-term future with Australia.
The project involves dredging 1.1 million cubic metres
of soil near the Great Barrier Reef Marine Park, which will then be disposed of on land.
Asked for her reaction to the letter opposing the project, Palaszczuk quipped, "Those who are writing such letters have good jobs. I know how tough the people are doing in my state."
"We have had some closure of companies like Queensland Nickel, and the Clive Palmer's. With the downturn in the resources industry I have had other mine closures," she said.
"This project is not just a sign of confidence in Queensland. This project by the Adanis is a sign of confidence in regional jobs for families. It will give them such a boost. And all the mayors have commented about that on this trip," the premier said.
She said the Adanis have committed to create 10,000 direct jobs and many thousands indirectly.
Strongly backing the project, Palaszczuk, however, refused to set a time-line for the project, saying "that's a matter for the federal parliament. I understand that we are getting a report back today (last Friday when the interview took place)."
"So, hopefully they will be able to debate it. I know it's very hot on my Prime Minister's agenda. So I am quite sure they will debate it as soon as they possibly can," the premier said.
She also said that the federal parliament will sit in the near future to get the piece of legislation through as the project is a high priority for them.
Asked if her government is ready to offer any warranty for the project against public protest even after the final federal approvals, Palaszczuk said the Australian laws do not provide any such provisions by a state but the federal government can do that.
"Also, there is a legislation pending with the federal parliament in this regard which will insulate large infrastructure projects from public disruption. That federal legislation is before the national parliament at the moment," she said.
"It's been introduced and so that will be debated. But that is the sphere of the federal government and not the state government. So the project is happening in Queensland which I fully support. My government fully supports it," she said.
"I have brought eight regional mayors with me here to India to show our support. We have had a fantastic meeting today (March 17), and tonight with Adani and the board members," she said.
Lauding the Adani group for its great prowess in
building world-class infrastructure, the premier said, "I thank Adani for showcasing to us the depth of diversity of his group in relation to our solar project as also the edible oil business."
"The scale of his Mundra port is something I have never seen in my lifetime. I have been to ports in Japan and across Australia. But this port is a true testament to the Adani Group's ability to build world class infrastructure," she said.
Asked whether the Adanis have sought some infrastructure loan from the state, she said, "Yes but this (concessional funding worth ASD 5 billion) again is through the federal government and is available to any company willing to invest in Northern Australia, and not just Adani."
On how much funding they are looking at, Adani Group's Australia chief executive and country head Jeyakumar Janakaraj said though the group is eligible for 50 per cent of the debt amount or ASD 800-900 million.
He said they are going to tie-up with commercial banks for most of the loans and only leftover or the maximum 50 per cent of this facility will be drawn upon.
"We will mostly look at the export credit agencies (ECAs) from China and Korea, from where we will be buying machinery for funds. We will tap banks only for the remaining amount," Janakaraj said.
As an explanation, he said some banks have been misled by environmental groups (SBI had backed out of an Rs 8,000 crore commitment after protest by opposition parliamentarians in December 2015).
"And that is the main issue. We have already invested ASD 3.3 billion-all equity into this project which includes port and the mine. Rest of the debt funding is required mainly for the rail infrastructure which is ASD 2.5-2.7 billion," Adani said.
