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| Greenko to acquire Hemavathy Power |
| Raghuvir Badrinath / Chennai/ Bangalore Jan 22, 2010, 00:20 IST |
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Greenko Group, the Hyderabad-headquartered AIM-listed clean energy project firm, is set to acquire Hemavathy Power Project in Hassan district of Karnataka at an estimated Rs 150 crore deal. Hemavathy Power Project is understood to have hydel power generation capacity of close to 25 Mw on the Hemavathy River Reservoir Dam in Gorur.
A Greenko spokesperson confirmed that they are in negotiations to expand their combined generation capacity across India but they will not be able to confirm at this point of time.
According to Greenko, it is involved in various transactions which will increase the secured capacity of the Group from 350 Mw to 470 Mw.
Greenko added that they are pursuing acquisition opportunities of close to Rs 200 crore which it expects to finance through borrowings of approximately 70 per cent of the value and the equity recently raised from the Global Environmental Fund. The Group has arranged debt leverage with a local banking partner, Yes Bank, and the acquisition is due to complete legal documentation in two to three weeks.
In addition to this acquisition, Greenko has acquired licenses to develop a cluster of 25 Mw run-of-river hydro projects totalling 100 Mw on the Cauveri River in Karnataka, which is a perennial river with very good hydrology. These are cascading projects and will raise Greenko’s secured capacity in Karnataka to over 100 Mw.
Greenko anticipates that the projects will be completed in the next three years in readiness for 2013 following a total capital expenditure of around Rs 700 crore, 70 per cent of which will be funded through debt.
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