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Mytrah Energy to add 300 MW in three states

According to reports, wind energy player Mytrah Energy India is looking to add 300 mw capacity in Andhra Pradesh, Maharashtra and Rajasthan. It is now in the process of financial closure, according to Vikram Kailas, managing director.

For this addition, capex will be about Rs 2,000-2,100 crore at Rs 6.6-7 crore per mw. Of this, Rs 1,500-1,600 crore will be from bank loans, and the rest will come from internal cash flows, he said. Specific timelines would be set after achieving financial closure, which could be next year.

This apart, it later has plans to add 500 mw, for which it has already identified the likely locations and has conducted feasibility studies. After this, it would look to add 150 mw. For these too, 70-75 per cent of the funds required would be debt. The aim is to be a 1,500 mw company in the short to medium term, he said.

Mytrah now has an installed capacity of 459 mw, which will increase to 500 mw this month, 550 mw by middle of the year. The capacity addition would be from the existing plant itself as it has commissioned only a part their capacity.

“We are fully funded for the existing 550 mw. So far, more than Rs 3,000 crore has been invested and we are profitable. The revenues are now $50 million and at 550 mw, will be Rs 550-600 crore on a full year basis,” he said.

At present, Mytrah generates 120 mw in Rajasthan, 80 mw in Gujarat, 52 mw in Maharashtra, 100 mw each in Karnataka, Tamil Nadu and Andhra Pradesh. The cost of production of wind energy is about Rs 3.50-4 per unit and it is viable even at Rs 5-5.50 per unit, he said.

“Tamil Nadu would be viable at Rs 4.5, up from Rs 3.5 and AP at Rs 5.20 from the current Rs 4.7. Gujarat would be viable at Rs 5 from the current 4.15. Of course, a final decision on the representations will be made by the respective ERCs,” he said adding that the company’s 100.5 mw project in Tamil Nadu sells power directly to select customers on a long-term basis. Here the net tariff is Rs 4.5 per unit.

Mytrah has built a portfolio of 450 mw in India, using a combination of ‘turnkey’ developers and in-house project development, with wind turbines purchased from three vendors. Mytrah sells power mainly to state grids through 13-year to 25-year power purchase agreements.

Wind farms have a shorter gestation period compared to others and scalability is not an issue. They can co-exist with other industries and do not involve relocation. For instance, in Tamil Nadu farming is practiced alongside the wind farms, he said.

According to the company portal, as of January 1, 2014, the Raksha Trust, a Jersey-based discretionary trust settled by Ravi Kailas, the chairman and CEO of Mytrah Energy, of which he and some of his family members and also a philanthropic trust are discretionary beneficiaries, held 57.6 per cent shares. Esrano Overseas held 14.67 per cent, Henderson Global Investors 7.45 per cent, Capital Research Global Investments 7.08 per cent and Blackrock 4.36 per cent.

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