Electrotherm plans to enter carbon credit market

Electrotherm India, with business interests in foundry, steel and automobiles, is planning to enter the carbon credit fray.

The company has hired representation for its clean development mechanism (CDM) project, which passes through the ministry of environment and forests and subsequently reviewed by the CDM executive board under the Kyoto protocol of the United Nations Framework Convention on Climate Change(UNFCCC).

The company is establishing a 30-Mw capacity waste heat power plant, which coupled with its battery operated vehicles, would make it eligible for carbon credits.

"The CDM proposal is currently being processed. Although the carbon credits market is a little low currently, it is expected to be a potential revenue source for us in the future," said Shailesh Bhandari, director, Electrotherm.

The company's engineering and projects division is focusing on exports in a big way. Exports, which earlier accounted for 15 per cent of the company's turnover is now expected to rise to 35 per cent in the current year and further to 50 per cent in the next two years.

It has completed several turnkey projects in the recent past in nearly 22 countries and is planning to consolidate its presence in international markets further.

ICICI Venture Funds Management Ltd has decided to invest Rs 82 crore in the company to part fund its second phase of expansion plans of Rs 400 crore. Bhandari said the expansion would see doubling of its turnover to Rs 1,200 crore next year.

It is also focusing on its steel product unit at Kutch, which produces TMT bars, stainless steel and ductile iron pipes.

With the commissioning of its structural mill, Bhandari said the company would be able to supply structural steel for sophisticated applications, including transmission line towers.