In the salt deserts bordering Pakistan, India builds its largest renewable energy project

Workers travels in a vehicle toward the construction site of Adani Green Energy Limited's Renewable Energy Park in the salt desert of Karim Shahi village, near Khavda, Bhuj district near the India-Pakistan border in the western state of Gujarat, India, Thursday, Sept. 21, 2023. (AP)
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Updated 05 December 2023
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In the salt deserts bordering Pakistan, India builds its largest renewable energy project

  • The Khavda energy park is located near Vighakot village near Kutch district of Gujarat
  • Developers say the park will be so big, once completed, that it would be visible from space

KHAVDA, India: Rising from the bare expanse of the large salt desert that separates India from Pakistan is what will likely be the world’s largest renewable energy project when completed three years from now.

The solar and wind energy project will be so big that it will be visible from space, according to developers of what is called the Khavda renewable energy park, named after the village nearest to the project site.

At the site, thousands of laborers install pillars on which solar panels will be mounted. The pillars rise like perfectly aligned concrete cactuses that stretch as far as the eye can see. Other workers are building foundations for enormous wind turbines to be installed; they also are transporting construction material, building substations and laying wires for miles.

When completed, the project will be about as large as Singapore, spreading out over 726 square kilometers (280 square miles). The Indian government estimates it will cost at least $2.26 billion.

Shifting to renewable energy is a key issue at the ongoing COP28 climate summit. Some leaders have voiced support for a target of tripling renewable energy worldwide in any final agreement while curbing use of coal, oil and natural gas, which spew planet-warming gases into the atmosphere.

What makes this heavy industrial activity peculiar is that it’s taking place in the middle of the Rann of Kutch in western India’s Gujarat state. The Rann is an unforgiving salt desert and marshland at least 70 kilometers (43.5 miles) from the nearest human habitation but just a short army truck ride away from one of the world’s most tense international borders separating the two South Asian nations.

GROUND ZERO OF INDIA’S CLEAN ENERGY TRANSITION

When The Associated Press visited the renewable energy park, two days of unseasonal heavy rains had left the ground muddy and water logged since the only escape for water in this rough terrain is evaporation. This made it even harder for the workers to do their job.

Notwithstanding the tough conditions, an estimated 4,000 workers and 500 engineers have been living in makeshift camps for the better part of the past year toiling to get this project up and running.

Once completed, it will supply 30 gigawatts of renewable energy annually, enough to power nearly 18 million Indian homes.

As India aims to install 500 gigawatts of clean energy by the end of the decade and to reach net zero emissions by 2070, this project site will likely contribute significantly to the world’s most populous country’s transition to producing energy from non-carbon spewing sources.

As things stand, India is still mostly powered by fossil fuels, especially coal, which generate more than 70 percent of India’s electricity. Renewable energy currently contributes about 10 percent of India’s electricity needs. The country is also currently the third-largest emitter of planet-warming gases behind China and the United States.

“There are people working here from all over India,” said KSRK Verma, project head for Adani Green Energy Limited, the renewable energy arm of the Adani Group, which the Indian government has contracted to build 20 gigawatts of the project. Verma, with over 35 years of experience building dams across turbulent South Asian rivers and enormous natural gas tanks under the Bay of Bengal, says this is one of the most difficult projects he’s undertaken.

“It’s not at all (an) easy site to work at, there is no habitation, the land is marshy, there are a lot of high winds, rains and this is a high earthquake prone area,” said Vneet Jaain, managing director of Adani Green at its headquarters in the city of Ahmedabad.

Jaain who has overseen multiple ambitious projects for the Adani Group said the first six months were spent just building basic infrastructure. “From April this year is when we started working on the actual project,” he added.

The Adani Group has been in the limelight this year ever since the US-based short-selling Hindenburg Research firm accused the Group and its head, Gautam Adani, of “brazen stock manipulation” and “accounting fraud.” Adani Group has called the allegations baseless.

Jaain of Adani Green says the allegations have had little impact on its ongoing projects including work at the Khavda renewable energy park.

AN EXAMPLE TO EMULATE

“Twenty years ago, India was exactly where a vast expanse of (the) developing world was,” Ajay Mathur, director general of the International Solar Alliance, said of the country’s renewable energy production. The alliance has 120 member countries and promotes renewable energy — primarily solar — across the world.

About 200 kilometers (124 miles) away in the industrial city of Mundra, also located along the Gujarat state’s coastline, the Adani Group is manufacturing the solar and wind energy parts needed for the project. It’s one of the few locations in India where most solar energy components are made from scratch. Some of the factories are run like laboratories, with protective gear, face masks and head covers required to avoid dust particles that can compromise solar cells.

The nearby wind energy factory aims to produce 300 turbines a year, with each blade stretching nearly 79 meters (86 yards) and weighing 22 metric tons (24 tons). Each wind turbine generator is capable of producing 5.2 megawatts of clean energy. They will be India’s biggest.

As Mathur of the solar alliance said, “India has traveled a long way,” and its largescale renewable energy projects including the Khavda park will be inspiring for other developing countries. “Here is a country that was exactly where they are today and was able to make the change,” he said.

ENVIRONMENTAL IMPACT

While acknowledging the importance of transitioning to renewable energy, environmental experts and social activists say India’s decision to allow clean energy projects without any environmental impact assessments is bound to have adverse consequences.

“The salt desert is a unique landscape” that is “rich in flora and fauna,” including flamingos, desert foxes and migratory bird species that fly from Europe and Africa to winter in this region, according to Abi T Vanak, a conservation scientist with the Bengaluru-based Ashoka Trust for Research in Ecology and the Environment. Vanak has overseen multiple environment-related research projects in the Kutch region.

Kutch and other similar regions are classified as “wastelands,” by the Indian government — and Vanak says this is extremely unfortunate. “They are not recognized as valid ecosystems,” he said.

With renewable energy projects exempt from environmental impact assessments, “There is no system in place” to determine the best places for them, according to Sandip Virmani, an environmentalist based in Kutch.

At a little over 45,000 square kilometers (17,374.5 square miles), the Kutch district is as big as Denmark and is India’s largest district. Given this, Virmani said there is enough land in Kutch for various renewable energy projects. But he fears that dairies and other local businesses in the region might be impacted by large-scale projects. “It has to be in the context of not compromising on another economy,” he said.

Meanwhile, longtime residents are still waiting to see how this huge project near their village will affect them.

Hirelal Rajde, 75, who has spent most of his life in Khavda, is mindful of the upcoming energy project as well as the increase in tourism in recent years in this otherwise desolate region. “I think these developments are both good and bad,” said Rajde.

“I think overall though it will benefit more than it will cause problems,” he said. “I tell everyone who lives here to hold onto their land, don’t sell it. In a few years, I tell them they’ll have so much business that they won’t be able to rest even at night.”


Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’

Updated 22 February 2026
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Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’

  • Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
  • Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says

KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.

Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.

Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.

The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.

“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.

“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.

The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”

With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.

According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.

“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”

Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.

“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.

“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.