Voltech to invest Rs 800 cr

Company looking at raising equity for future investments and planning to set up solar plant in African countries

Voltech Group, a provider of electrical systems testing and commissioning, is planning to invest around Rs 800 crore in setting up solar farms.

Speaking to the media after announcing a new joint venture in Nigeria, M Umapathi, chairman and managing director, Voltech Group, said the company at present had a 30-Mw solar plant in Ramanathapuram district and would expand to 100-Mw over the next three years with an investment of around Rs 800 crore.

To support the investment, the company is planning to raise around Rs 500 crore as equity from outside investors, he said.

"We expect to sign the power purchase agreement (PPA) anytime for 30-Mw with the Tamil Nadu Electricity Board (TNEB). After this, we expect investors to infuse money," said Umapathi, and added, the company received the Letter of Intent (LoI)  from TNEB for a 10-Mw solar power plant in Ramanathapuram district.

Regarding the new joint venture (JV), which was formed on Thursday, he said, the group joined hands with Nigerian company Bonjul Management Services to float a new firm, which will sell Voltech-manufactured transformers and electrical systems there.

While Voltech will hold 49 per cent stake in the JV, the Nigerian partner will hold the balance and both would infuse $10 million each as the new company is planning to set up a manufacturing facility in the country.

The group is also scouting for a local partner to set up a 100-Mw solar plant, which will attract an investment of around Rs 1,000 crore. “Our portion will be EPC with a maximum 10-15 per cent investment, while the balance would be from the local investor,” he said.

On the upcoming solar panel manufacturing facility at Porur on the outskirts of Chennai, he said, the plant was expected to go on stream next year. The company pegged around Rs 100 crore investment in the facility.