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| Oriental Green to invest Rs 730 crore in biomass power plants |
| TE Narasimhan / Chennai Sep 01, 2009, 02:57 IST |
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Company plans to go public in 2011
Oriental Green Power (OGP), a renewable energy generation company promoted by Chennai-based Shriram EPC, would invest Rs 730 crore for setting up biomass-based power plants. The company is also planning to list by 2011.
Speaking on the sidelines of the company's annual general meeting here on Monday, T Shivaraman, managing director and chief executive of Shriram EPC, said, “We have set a target to list OGP by March 2011. The company wants to give thrust on renewable energy both in domestic and international markets.”
The investment would go into setting up of 146 Mw plants, each Mw entailing Rs 5 crore. Most of these would be ready by December 2010. The company currently operates biomass plants with a total production capacity of 22 Mw, he said. The company would fund the project through debt, which would constitute 70 per cent and equity, comprising the remaining 30 per cent.
This apart, Oriental is in the process of acquiring wind farms having a capacity of 200 Mw. So far, it has acquired wind farms with a capacity of 100 Mw in Tamil Nadu and Andhra Pradesh.
The acquired farms will be revamped, he said, adding the company had ramped up the capacity of a wind farm it acquired in Tamil Nadu to 95 per cent from 60 per cent.
“We are also looking at taking up overseas renewable projects, for which we are open to joint ventures,” said Shivaraman.
Commenting on Leitner Shriram Manufacturing Ltd, a company set up by Shriram EPC to manufacture wind turbines at Gummidipoondi near Chennai, he said recently it had exported components for wind turbines in small number and was planning to scale up exports from the second half of the current fiscal mainly to eastern Europe.
The company has also entered into a licence agreement with Envirotherm of Germany for air blown gasification technology for producing fuel gas, which will replace furnace oil and liquefied petroleum gas, among others.
Shivaraman said Jindal was trying out the technology and Leitner was looking at offering solutions to other manufacturers including glass, iron and steel.
Shriram EPC’s current order book stands at Rs 1,600 crore, to be executed in the next 18 months. The company’s turnover in 2008-09 stood at Rs 1,010.86 crore as compared with Rs 703.04 crore, an increase of 43 per cent. Net profit was up 34.65 per cent to Rs 47.48 crore from Rs 35.26 crore.
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