Voltech Group to invest Rs 1,000 cr to set up solar farms in TN

Plans to raise around Rs 300 crore from private equity and other players

Chennai-based Voltech Group, an electrical systems service provider, to set up a solar farm in Tamil Nadu. The company has joined hands with a Dubai-based company to to set up solar farms which can produce 100 MW of electricity, with an investment of around Rs 1,000 crore. Meanwhile, the company also said it is looking at raising around Rs 300 crore from private equity and other players.

M Umapathi, chairman, Voltech Group said that the company is looking at setting up solar farms in various districts of Tamil Nadu including Ramanathapuram, Sivaganga, Tuticorin and East of Tirunelveli where density of Sun is high.

The Group has partnered with Arab Gulf Pearl Trading Co, UAE, and NanoPV, US, for Solacon as equity and technology partners respectively to set up a 10MW, grid-linked, solar power generation facility in Ramanathapuram District to start with.

“We have acquired around 100 acre of land and looking at acquiring another 150 acre at Kadaladi in Ramanathapuram district. The initial phase of 2 MW will be ready by March 2013 and gradually it will increased to 100 MW in various parts of the state”.

He added, upto 10 MW the company can fund the project with 30:70 (equity:debt) ratio, post which it would look at raising money from private equity and other players to the tune of around Rs 200-300 crore. The fund raising is to support company's plan to set up solar farms which can generate 100 MW through solar energy in various parts of the state.

He added, the company is also open to BOOT projects, by which somebody would invest in the project, while the company would develop and transfer the farm. It is also looking at third-party sale of power and grid supply to the utility, said Umapathi.

Besides, Solar farm Voltech Group is also planning to set up a manufacturing facility to manufacture solar farms, which would initially cater to the upcoming project being developed by the JV partners and going forward it would look at supplying for other customers, said Umapathi.

The proposed manufacturing plant would attract around Rs 20-25 crore investment. “Normally to such a plant it would require around Rs 100 crore, since the company already has land, the investment will be less,” he added.