Bhoruka Power Corp plans to raise Rs 1,200 cr
Dec 05 2012 , Hyderabad
Speaking to Financial Chronicle, he said this would need an overall investment of about Rs 1500 crore and about Rs 300 crore would be in the form of equity. The company has decided to install the capacity in Karnataka and Andhra Pradesh, which recently increased the tariff to Rs 4.70 per unit, was also under consideration, he said.
The wind power plants were working at a 27 per cent plant load factor and therefore will drive the growth. The general power deficit situation in the country would imply an increased demand for power, he said.
After expansion, the company would have 330 Mw installed wind energy capacity and 170 mw of hydro capacity. The company generated 500 million units a year and is hopeful increasing it to three fold in three to four years, he said. It was selling hydel power to the utilities at Rs 3.4 a unit and wind power at Rs 3.7 a unit.
This apart, it will also make a beginning in the solar photovoltaic with a 5 mw farm. The average cost would be about Rs 8.5 crore per megawatt. With Andhra Pradesh recently announcing to add significant capacity in the solar segment, the company will look to explore the opportunities for setting up a solar farm in AP also, he said.
Though the lenders are finding it difficult to lend for the power projects due to viability issues due to shortage of coal and natural gas, there is no resistance from the lending institutions for funding renewable projects, he said adding that tying up the finances would not be as difficult.
“The right assessment of renewable projects is the key for getting institutional financial assistance,” said Chandrasekhar, who was in Hyderabad for the Regional Power Conference, organised by the Confederation of Indian Industry.
The company, now backed by two private equity players, has been actively selling about 1,00,000 carbon credits (certified emission reduction) to Mitsubishi (Japan) valued at Rs 8 crore. With more clarity likely to emerge on carbon trading soon, he said there is potential for CER trading.