Early this year in January, RPP Infra Projects Ltd, announced its entry into solar power sector, beginning with a 5 MW project in Tamil Nadu. The company would invest Rs 80 crore in the project, and is in talks with solar manufacturing companies in China and Thailand.
The Erode-based construction company said in an announcement to Bombay Stock Exchange (BSE) that it expects to commence operations in 2011-12, and that funding would be finalised once the joint venture is formed. The company is in advance talks with Thai Agency Engineering Corporation Ltd from Thailand.
The company further added then that the proposed solar farm would come up on a 92-acre site at Kamudhi in Ramanathapuram district of Tamil Nadu. The location is considered have the best potential for solar energy generation in south India, according to the company. The project would utilise crystalline technology for producing power.
Apart from this project, the company also plans to set up a manufacturing unit for solar photo-voltaic (PV) modules in the coming years as it sees rising demand for PV modules.
In a recent interview, Arul Sundaram, Chairman & Managing Director, RPP Infra Projects Limited said that the company has bought land for Solar Power Projects in the most potential areas in India, and would be forming a consortium or a joint venture to execute the project.
He further added that the investment in the Solar project is still in infant stage and that once the JV was finalized they would be jointly decide on the size and investment structure which would be a win-win situation for both the partners.
It seems like now the company is unclear about the size and the plans and not sure what kind of joint venture partner that they are looking at. Further it is unclear whether they have acquired additional land in Gujarat or Rajasthan or if they are referring to their existing land parcel in Tamil Nadu. Given that Tamil Nadu does not have a solar policy and no grid connected PPA have been signed by the state based on CERC published tariff’s it not clear if RPP has a strategy in place.
Panchabuta will follow the development closely and keep the readers updated on the developments.