Home » Finance » Konark Group plans to raise $30-35 million through private equity to fund Wind and Solar power projects

Konark Group plans to raise $30-35 million through private equity to fund Wind and Solar power projects

Konark group came into being in the late seventies under the visionary management of Mr. Prakash Dalmia, who initially forayed into the textile business by manufacturing and marketing suiting fabric and later diversified into manufacturing specialty yarns. Later Konark diversified into real estate and now into renewable energy.

The company in November last year had issued RFQ for EPC of 5MW project in Gujarat.

According to reports, Konark Group plans to raise $30 million-$35 million through private equity placement in its power projects business, said  Director Shonit Dalmia.

The Mumbai-headquartered group’s listed company Konark Synthetics has set up a subsidiary, Konark Infratech, for foray into power sector. It plans to invest Rs 1,000 crore to set up 155 megawatts of solar and wind capacity by 2015.

“We would raise around $30 million-$35 million through private equity. In the first round we would raise Rs 40 crore by December at our wind project level, and we would then raise the balance at the power business holding company,” Dalmia said.

The expansion would be financed through internal accruals, debt and private equity.

The company aims to commission 15 MW of solar power in 40 MW of wind energy by March 2012 and subsequently scale up the capacity to a total of 155 MW by 2015.

“While evaluating options to grow our company, we realized that the renewable sector has got tremendous potential if you look at the thrust given by the Indian government to the sector and the gap in current demand and supply,” Dalmia said.

“We are focusing on renewable energy also because of the added incentive of carbon credits and renewable energy credits,” he said.

The company plans to sell the power from its planned units to various state electricity boards.

“There is enough supply of conventional power so the short term merchant power rates have gone down. For renewable power, the demand and supply gap is so huge that the prices may not go down for the next ten years,” Dalmia said.

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