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 in March 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.
Techno Electric & Engineering Company Ltd (TEECL), in early April 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.
In an exclusive interview with CNBC-TV18, Padam Prakash Gupta, MD of Techno Electric & Engineering says that the company is upbeat on the non-conventional energy segment. He says that the revenues in the segment are likely to double from that in last year.
The company shares that “200 megawatt of operating assets of wind power will come up by June,” also, Gupta says, “the plan is to add 100 megawatts a year.”
…..Q: In terms of renewable energy that is the next growth driver. What sort of investments we could expect for FY12?
A: We are upbeat on non-conventional energy, particularly on wind power. Given good wind pockets we can produce power at competitive prices or grid parity rates. Last year we had 95 megawatts operating; now we have commissioned another 35 megawatts by April end. Another 70 megawatts is expected to be commissioned during May and June. Hence, our portfolio in wind power will be 200 megawatts plus by June end the revenue in this segment of non-conventional energy will be double of last year.
Q: 200 megawatt of operating assets of wind power will come up by the end of this year. What is the scale up after this?
A: We plan to add 100 megawatts a year. The 100 scheduled for this year is happening in June. Therefore, we avail the output of the full year. It is happening by end of next month it will be commissioned progressively because it is modular. They are in the size of 1.5 to 2.1 megawatts unit each. Hence, all this will be commissioned by June end.
Q: Have you tied up with anyone to sell your power or will this be used for internal consumption?
A: No, we have no internal consumption. We are getting into this renewable energy certificate mechanism. Guided by CRC and Ministry of Non Conventional Energy initiative in the state, on these assets that are coming up in Tamil Nadu we have signed agreements under this scheme. They call it average power purchase, pooled power purchase cost, hence, Tamil Nadu electricity board will pay us about Rs 2.50 per nit and we expect to realize another Rs 150 to 160 from REC.