Konark Group to set up 100 MW solar and wind power projects
Konark Group plans 100 MW renewable projects in Gujarat, Rajasthan
Mumbai, Jan. 12:::::::::::Mumbai-based Konark Group, which is into textiles, plans to set up 100 MW of solar and wind power projects at an investment of Rs 1,000 crore.The power unit will be a subsidiary of the group's listed entity, Konark Synthetics, which is into yarn and garments.Konark has received an allocation of 5 MW in Gujarat. Land has been identified in Kutch and the company has signed a 25-year power purchase agreement with the Government, which has assured Rs 15 a unit for the first 12 years and Rs 5 a unit for the next 13 years, said Mr Shonit Dalmia, Director, Konark Group.Mr Dalmia said the State has also promised to back the PPA with a letter of credit. The project is expected to be completed this year-end with the use of imported thin film technology.
Konark has also tied up with the Rajasthan Government for 50 MW of solar power generation. About 410 acres near Jodhpur has been allocated by the State at 10-20 per cent of the ready reckoner value as an incentive to attract the investment. Land will cost no more than Rs 2 crore, said Mr Dalmia. The State has also accorded an evacuation certificate to Konark for 50 MW, as a comprehensive legislation for renewable energy is awaited.“We are committed to becoming a renewable energy IPP and are deploying international technology partners for engineering, procurement and construction (EPC). We are also in advanced stages of finalising wind power projects with installations in the southern and western parts of India,” he said.
Wind farms in TN
Efforts are on to set up wind farms in Tamil Nadu. A consultant has been appointed and his proposal is awaited. “The target is 45-50 MW and we are confident of commissioning 10 MW of wind power along the Tamil Nadu coastline in the 12-15 months,” he said.The Konark Group is looking at a 25:75 equity debt ratio for the Rs 1,000 crore renewable energy initiative. For the Rs 250-crore equity part, the promoters intend to bring in Rs 150 crore, and the balance would be private equity.Over the past few months, the group has been evaluating the potential in the power sector and is now bullish on the future prospects of the renewable energy generation. In the first stage, the group plans to set up infrastructure to generate power through solar and wind energy projects. The group has already submitted proposals to Gujarat, Rajasthan and Maharashtra to begin operations in the sector.The group plans to fund the investments for all its projects through a mix of internal accruals and debt and is also exploring a possible private equity infusion.The group has now started identifying various technology partners from European countries for solar projects and is in advanced stages to deploy its technology partners for wind projects.Over the last 6-7 years, the group has been witnessing a major expansion spree in its textile division (Konark Synthetic Ltd) by making its presence felt in the entire textile value chain except retail. The group has presence in sector by having hi-tech plants for manufacturing of synthetic yarns, cotton spinning, fabrics for home furnishing and suiting's and garments.
Speaking on behalf of Konark Group, Mr Shonit Dalmia, Director, said, “The power industry represents an important opportunity for the group and we are committed to becoming a renewable energy IPP. We are executing solar energy projects in Gujarat & Rajasthan by deploying international technology partners for EPC. We are also in advanced stages of finalising wind power projects with installations likely in the southern and western parts of India.”Konark expects the power division to substantially add to its turnover over the next few years. The group is also exploring opportunities to generate power through other clean-tech models.
….byS.Shanker….in THE HINDU BUSINESS LINE newspaper.
