Panchabuta had mentioned in February that Kolkata-based Techno Electric and Engineering Company was in talks with IFC, Standard Chartered Bank and DBS Bank for raising 750 crore of debt to part-finance its 200 mw wind power project in Tamil Nadu.
The company had plans to invest about 1,150 crore in the wind power project in two phases. The first phase would include a 125 mw capacity and is expected to be commissioned by June 2011 in Tamil Nadu.
The second phase will include a 75 mw project. It will be commissioned by March next year.
We had mentioned last month that International Finance Corporation (IFC), the investment arm of the World Bank, is planning to set up $55 million debt-equity investment (about Rs 248 crore) in Simran Wind Project, the clean energy arm of Kolkata-based listed firm Techno Electric and Engineering Company. Simran Wind Project has an installed capacity of 50.4 mw in Karnataka and Tamil Nadu. The company is now expanding its capacity for a total new capacity of about 126.9 mw at Muthianpatti, Amdhapuram and Rasta in Tamil Nadu.
According to reports, Techno Electric & Engineering Company Ltd (TEECL), one of the leading EPC Company in the country, focused on power sector, today announced commencement of first phase of the 125 MW wind energy generation project. Simran Wind Project Pvt. Ltd., the 100% subsidiary of TEECL, embarked the project by commissioning 15 MW of wind energy generation on March 31, 2011 in the state of Tamil Nadu. The 125 MW project which is as per of schedule is set for completion by June 2011. The total cost for phase I of the project will be about Rs 700 crore with a debt-equity ratio of 1.8:1. The debt financing is being done by IFC Washington, Standard Chartered & DBS.
Commenting on the development, Mr. P.P. Gupta, Managing Director, TEECL, said, “We are happy to announce the commencement of 15 MW of wind energy generation as per the scheduled time. The non-conventional energy sector is growing stronger with the implementation of REC mechanism and its trading on power exchanges. This would attract more investments into non- conventional energy generation”.
“We are focused on expanding in the green energy space,” Mr. Gupta added.
The Power Purchase Agreement for 15 MW has been executed with the Tamil Nadu Generation & Distribution Company (TANGEDCO) under the REC scheme.