According to reports, TVS Energy, a subsidiary of country’s fourth largest two-wheeler company TVS Motor, is planning to set up a 25.5 MW capacity wind farm in the state of Maharashtra. The proposed project is expected to attract an investment to tune of around Rs 153-178 crore. It may be noted, the $6 billion TVS Group forayed into power sector through TVS Energy last year.
TVS Energy planned to set up a 25.5 MW capacity wind energy project in Maharashtra, according to TVS Motor’s annual report 2011-12.
According to industry sources, the capacity cost to set up 1 MW of wind farm is around Rs 6-7 crore, at the current market price. Thus, the investment would be around Rs 153-178 crore.
The power generated by this project is proposed to be sold to power distribution utility in Maharashtra. Two turbines (3 MW) were commissioned during the year and the remaining 15 turbines (22.5 MW) are expected to be commissioned in 2012-2013, said in the report.
It may be noted, the TVS Group made its footprint into the power sector by floating a TVS Energy, a subsidiary of TVS Motor. The revenue earned by TVS Energy in 2010-11 was Rs 16.64 crore and EBITDA was Rs 13.34 crore.
However after providing for interest of Rs 13.06 crore and depreciation of Rs 7.15 crore, the net loss from operations was Rs 6.87 crore. TVS Energy expects the grid availability to improve during the current year.
“During the year, power generation by TVS Energy’s wind turbines had to be backed down under instruction of the state transmission utility, viz., Tamil Nadu Transmission Corporation Limited (TANTRANSCO) during the peak wind season due to overloading and high frequency of the grid. Consequently, the energy generation from four wind energy projects with a capacity of 34.25 MW located in Tamil Nnadu was severely affected,” said in the report.
In 2011-12, TVS Motor made an equity investment of Rs 25 crore in TVS Energy. As at March 31, 2012 TVS Motors invested Rs 76.75 crore in the company and holding 94.5 per cent in TVs Energy.