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| Natural Power to set up 5 Mw solar plant in Jaipur |
| Ravi Menon, / Mumbai/ Bangalore Dec 11, 2009, 00:48 IST |
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Natural Power, an India-focused solar energy firm, is looking at setting up a 5 Mw solar farm near Jaipur at a cost of Rs 85 crore. The company will finance 70 per cent of the total project cost through a combination of private equity and debt raised from Indian and foreign investors, company co-founder Bharat Vasandani said.
“We received approvals from the Rajasthan government a month back. The project will use debt and equity in the ratio of 70:30. Though Indian banks are offering debt at 8 per cent, we are looking to get it sourced from outside India at 6-6.5 per cent, thereby making the project more attractive for investors,” Vasandani said.
The 5-Mw project has approvals to expand to over 40 Mw dependent on requirements, he said. "We have secured 75 per cent of the required approvals to produce 40 Mw and will consider upgrading this to 100 Mw at a later point," Vasandani said.
“We are currently working on multiple commercially viable business models for solar application in India, in grid connected as well as captive power. We are looking at becoming one of the largest solar power companies over the next five years,” Vasandani said.
Jaipur-based Natural Power is a venture started by Venus Capital two months ago. Venus Capital is a boutique corporate finance company set up in February this year to focus on opportunities in India’s growing solar industry.
The company is also working on developing rooftop solar networks in Mumbai, Pune, Hyderabad, Bangalore, Indore and Bhopal. “We are looking at partnering with developers in corporate and retail projects giving them access to pollution free and cheaper energy which they can promote. Tax breaks are another incentive for people to invest. Solar rooftop power generation will help avoid load-shedding, especially during summers. Another benefit will be the end of roof leakage problems,” Vasandani said.
Natural Power is speaking to venture funds from outside India and some Indian business houses for financing rooftop projects on a large scale.
“A 100 Kwh solar rooftop project will cost around 1.5-2 crore, of which 70 per cent will financed through debt,” Vasandani said.
Under the National Action Plan on Climate Change, India has launched its Solar Mission with plans to generate 1 Gigawatt (1,000 Mw) of power by 2013 as part of a $19-billion investment program. The amount of solar energy produced in India is merely 0.4 per cent of the total power mix. However, India is currently ranked number one along with the United States in terms of potential solar power generation capacity.
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