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Puri Oil Mills to raise funds for hydropower project

The total project cost of the 14-megawatt power project is around Rs 140 cr

Vijay C Roy  |  Chandigarh 

Ltd, the flagship company of North India-based Puri Group, is planning to raise funds for its project to be set up in Mandi district of Himachal Pradesh.

The total project cost of the 14-megawatt (MW) power project is around Rs 140 crore and the company is contemplating various options such as joint venture, developmental funds and private equity, among others.

Ltd's Managing Director told Business Standard, "We are planning to expand into hydroelectricity, which is a capital intensive business. We have received techno-economic clearance for running the Uhl River project, going to be set up at Uhl in Mandi District of Himachal Pradesh. The total capacity of the project will be 14 megawatts and the estimated cost is Rs 140 crore. Negotiations are in progress with globally renowned infrastructure for both technical and financial collaboration for the project,"

"We are looking at various options such as joint venture, developmental funds from various institutions and private equity, among others, for funding the project. We hope to complete the process in the next couple of months," he added. The company intends to commence the project through a special purpose vehicle and has a target to complete the project by 2017.

owns seven small projects spread across Himachal Pradesh and Haryana, with a total capacity of 31 MW. Out of these, 2 projects in Haryana - at Yamunanagar and Karnal, each having an installed capacity of 1.40 MW - and one at Kullu in Himachal Pradesh with a total capacity of 2 MW have already been commissioned and are running successfully.

In addition to this, the company intends to set up a project at Kullu (7.50 MW), Karnal (2.1 MW) and Yamunanagar(2.15 MW). All of these projects are at the techno-economic clearance stage.

Puri Oil mills has interests in edible oil, animal feed and hydropower generation. It makes the P Mark brand of mustard oil, which is the market leader across the northern region and has a sizable presence in eastern India. The company has crushing capacity of 60,000 tonnes per annum, with factories in Moga (Punjab), Damtal (Himachal Pradesh) and Bahadurgarh (Haryana).

The company diversified into the renewable energy sector in the year 2006 and started exploring hydropower investment opportunities in the country.

First Published: Mon, September 22 2014. 20:46 IST