Orient Green targets 1 GW wind capacity in 3-4 yrs
Riding high on initiatives taken by both Central and state governments to increase wind power generation, Shriram group entity Orient Green Power is targeting nearly 1,000 MW wind capacity and Rs 1,000 crore revenue over the next 3-4 years. “Considering the initiatives taken by the Centre and various state governments to increase the share of renewable power, especially wind, we see a huge scope for us to almost double our capacity to nearly 1,000 MW in the next 3-4 years,” its Managing Director S Venkatachalam told PTI here. Orient, which reported a total revenue of Rs 388.20 crore in fiscal 2015-16, is eyeing Rs 1,000 crore revenue by the time it touches the 1,000 MW mark.
The company has a total operational capacity of around 425 MW and 57 MW of projects at various stages of development. “We are hopeful of adding over 100 MW each year to reach our targets,” he said, adding some of the states are not only planning to set up new projects but some are likely to look at replacing the older projects. Currently, Orient Power has operational projects in states like Tamil Nadu (308 MW), Andhra Pradesh (75 MW), Gujarat (29 MW) and Karnataka (1 MW) and another 11 MW in Europe. It is also planning to expand in regions like Maharashtra and Rajasthan. The BSE-listed firm is also in the process of firming up loan for 43.5 MW expansion project in Andhra Pradesh.
The company is planning to invest around Rs 320 crore for the expansion out of which the debt component will be around Rs 220 crore while Rs 100 crore will be through equity infusion. “We are also in the process of refinancing old wind assets debts with lower interest and longer tenor. We are in the process of getting final approval of flexible structuring 5:25 scheme from existing bankers to extend the tenure of rupee loans by 17 years up to 2033,” Venkatachalam said. Orient Green, which also has 106 MW of biomass-based power capacity is in the process of demerging the wind and biomass businesses. It will put the biomass business in a company christened Biobijilee Green Power Ltd. “We have 12 biomass projects in states like Tamil Nadu, Maharashtra, Rajasthan, Telangana and Madhya Pradesh. We want to currently focus on the wind energy which has huge growth potential. At the same time, we want to increase efficiency of our biomass projects,” Venkatachalam said.
Source:PTI
