NTPC board has approved the investment proposal for 1,320 MW thermal power project in Madhya Pradesh.
The proposal involves setting up of Khargone Power Project in the State of Madhya Pradesh at an appraised current estimated cost of Rs 9,870 Crs.
However, the approval is subject to Environment Clearance of Ministry of Environment and Forests.
The Board of Directors has also accorded approval to the company's proposal to set up 10,000 MW of renewable energy projects during the next five years.
BORG Energy India, a subsidiary of BORG Inc., has launched the BORG Astra plus Home Series, a Range of fully loaded micro solar power plants in the Northern Part of India.
BORG Astra Plus Home Series micro solar power plants generate maximum power output and are offered in four ranges - 500W, 1000W, 1500W and 2500W.They have the potential to save up to 60% of a households power bills with a conversion efficiency of 98% and less than 3 milli seconds transfer time
Dr. Boaz Augustin Jr., MD, Asia Pacific, BORG Energy said "BORG's endeavour has always been towards empowering people to generate their own power."
Joseph Fournier, director, BORG Inc. shared details about BORG's R&D on solar nano Space. These solar panels developed from Nano Space technology is expected to hit the international market by 2016.
He added: "We are delighted to launch our Astra Plus Home Series micro solar power plants in North India which shall substantially contribute to our endeavour to power 40000 Indian households by April '14, apart from offering these Borg Powered households independence in generating their own low cost power as well as ensuring uninterrupted power supply. We seek to empower people to make alternative power a way of life and look at ‘Solar' as a priority medium for Power and way of life. Smart grid household micro solar power plants are a feasible option, especially in India, which receives 300 clear sunny days in a year."
The BORG Astra Plus Home Series is ideally suited to convert house roof top into a micro solar power plant. Customers can now experience and purchase the BORG Astra Plus Home Series micro solar power plants from the exclusive BORG Power Play showrooms.
Borg Energy, a solar power solutions provider, plans to invest USD 45 million (Rs 279 crore) in India on projects including a rural electrification programme.
The investments are likely to be made in next six months.
The company, which entered the country last year, is in advanced discussions with some states in North India for a rural electrification programme.
The Hayana discoms (Dakshin Haryana Bijli Vitran Nigam and Uttar Haryana Bijli Vitran Nigam) have prepared a capex (capital expenditure) plan of Rs 5,000 crore for the next three years to strengthen power distribution system in the state, so as to ensure more power with greater reliability to meet the increasing demand.
Devender Singh, principal secretary (power) and chairman, Haryana Power Utilities, said here on Tuesday that power transmission and distribution systems have been planned to match the increase in demand. The discoms have planned a capex of about Rs 5,000 crore over the next three to four years, for which integrated planning has already been initiated.
Singh said that to meet the increasing demand of power in the state, the power utilities are likely to make arrangements for an installed generating capacity of 18,000 to 19,000 MW by 2016. The total installed power generation capacity (from all sources, including state's own projects and long term arrangements from other sources) in Haryana has increased to over 10,000 MW. Presently, the availability is more than the demand.
He said that the power transmission and distribution system was also being strengthened accordingly. The utilities would construct 146 new sub-stations of various levels and augment capacity of 182 existing sub-stations in the next three years at a cost of Rs 3,500 crore, so as to match the capacity of the transmission system in accordance with the increasing availability of power in the state. This plan is besides the capex plan to strengthen the distribution system. During the current financial year, 32 new sub-stations have already been commissioned and capacity of 47 existing sub-stations has been augmented.
He said that the Centre had approved power development schemes of Rs 1,487 crore for 36 towns in Haryana under its Restructured Accelerated Power Development and Reforms Programme (RAPDRP).
The RAPDRP would be implemented in two parts. Under the first part, the power distribution system would be made information technology (IT) based while under the second part, the power distribution system in towns would be strengthened and renovated.
Under the first part of this prestigious programme, the nigams plan to give a strong information technology base to the electricity distribution system through consumer indexing, asset mapping, metering of feeders and distribution transformers, automatic data logging, feeder segregation, ring fencing, information technology applications and the establishment of base line data system.
While the second part of RAPDRP covers renovation, modernisation and strengthening of 11 kV level by adding distribution transformers, re-conductoring of lines at 11KV level and below, feeder segregation or bifurcation, load balancing and installation of capacitor banks, mobile service centers and others.
Source: Business Standard
Tamil Nadu, which has the highest installed wind energy capacity in the country, does not seem to be an attractive destination for new investments in wind mill installations this year (2013-2014).
Investments in additional wind mill installations in the State were for 113 MW between April and December 2013 as against 165 MW in 2012-2013 and over 1,000 MW in 2011-2012. States such as Maharashtra, Gujarat, Andhra Pradesh and Rajasthan have higher number of new installations this year.
According to K. Kasthoorirangaian, chairman of the Indian Wind Power Association, there might not be any significant investment during the next three months of the financial year (January to March, 2014) in the State. Till 2012, Tamil Nadu was leading in attracting new investments.
Installations declined during the last two years (2012-2013 and 2013-2014) as investors have lost confidence, he says.
Last year, arrears to be paid to the wind mill owners for energy supplied to the grid were pending for several months. Though it was cleared this year, evacuation dropped.
“We lost 40 per cent energy during the windy season this year compared to last year because of fall in evacuation,” he says. Despite availability of wind and grid connectivity between May and September (wind season in the State), evacuation decreased from June to August, 2013 compared to the same period the previous year.
Earlier, industries in other States used to invest in the wind energy sector in Tamil Nadu. This year, even the industries here have moved out to other States. If the new installations across the country were for about 1,000 MW, nearly 700 MW will be by the industries here and these are in other States. In Maharashtra, the investors get Rs. 5.80 for a unit of wind energy supplied to the grid as against Rs. 3.51 a unit in Tamil Nadu, he says.
The State has installed wind energy capacity of more than 7,100 MW. The State Government envisages additional installation of 5,000 MW during the XII Plan period.
The challenges faced by the sector now need to be addressed for installations to gain momentum in the State again, he said.
The Piramal Group led by Ajay Piramal is scouting for investment opportunities in the Indian power sector, in a move that is as much an indication of the intentions of a conglomerate with money to invest as it is of growing investor interest in the business.
“The Piramal Group is looking at investment options and is evaluating opportunities. It has the resources and the appetite,” said a Mumbai-based power sector analyst who spoke on condition of anonymity.
A Piramal Group spokesperson, in an emailed response, said: “We evaluate opportunities across sectors including conventional power,” and added: “As a matter of business policy, we do not comment on specific opportunities.”
The power sector analyst cited above said several transactions were in play and cited investments made or interest evinced by foreign entities such as JPMorgan Chase and Co.’s asset management unit, Sembcorp Industries Ltd of Singapore and France’s GDF Suez SA, among others.
JPMorgan Asset Management invested $150 million in the Bhaskar Group’s Diliigent Power Pvt. Ltd in May 2013; Nagarjuna Construction Co. Ltd has been reported to be in talks with Sembcorp to sell a stake in a power plant; and Meenakshi Energy and Infrastructure Holdings Pvt. Ltd has agreed to sell a 74% stake in a 1,000 megawatts (MW) coal-fired power project to GDF Suez.
The debt-laden Jaypee Group is close to selling two of its three operating hydroelectric projects to a consortium led by Abu Dhabi National Energy Co. PJSC, known as TAQA.
The analyst explained that reasonable valuations have played a part in reviving investor interest in the power sector, as has the rupee’s depreciation, which has sweetened such deals for foreign buyers. The rupee has depreciated 11% against the dollar this year, making Indian assets cheaper for foreign buyers to acquire.
To be sure, valuations have become reasonable because many Indian promoters are looking for investors (if not to sell out altogether). Their problems include the domestic economic slowdown, high borrowing costs, delays in land acquisition and environmental clearances, and fuel shortages.
The Piramal Group itself is flush with funds after a 2010 deal in which it sold its pharmaceutical business to US drug maker Abbot Laboratories for Rs.17,000 crore.
Piramal Capital, which has a structured investments business unit, has invested Rs.550 crore in Navayuga Road Projects Pvt. Ltd, the road development arm of Navayuga Engineering Co. Ltd, and another Rs.500 crore in infrastructure company Green Infra Ltd. Piramal Capital picked up about a 10% stake in the Chennai-based vehicle loan company Shriram Transport Finance Co. Ltd for Rs.1,652 crore in May.
Analysts and experts say the evidence on hand does suggest a return of investor interest in the power business.
“There are some transactions that are happening. There are distressed assets; with valuations being depressed, it make sense,” former power secretary Anil Razdan said. “For the sector to fully recover, more financial closures need to be done for which the fuel issues need to be resolved. The projects need to run on full capacity to earn revenue.”
Power plants have been operating below production capacity because of fuel shortages. Things seems to be improving with the utilities tying up fuel supply agreements for 157 units totalling 71,000MW till November.
“Also, with the elections approaching, the demand for power will go up and to that extent there will be more power procurement by the state governments with state resources being deployed for the same,” Razdan added.
Indeed, trading in electricity saw a spike as the five states of Madhya Pradesh, Rajasthan, Chhattisgarh, Delhi and Mizoram, fearful of political backlash, bought additional power to avoid outages (and consequent voter outrage) in the November-December state assembly elections.
“We have to also keep in mind the fact that these asset sales are happening in projects that are operational or will soon start commercial operation. This mitigates the risk of land acquisition, approvals, clearances and project development. This appeals to foreign investors,” the power sector analyst mentioned in the first instance said.
Sambitosh Mohapatra, an executive director at PricewaterhouseCoopers Pvt. Ltd, said: “India is witnessing a revival of interest in investments, especially of international operators and investors from the Middle East, Europe and Japan, especially in the areas of renewables, conventional power generation (with advanced construction stage or operational) and electrical equipment.”
“It’s on the back of a positive outlook on the changing contours of the economy and expectations of improved governance. It also marks a phase of consolidation with the entry of large strategic operators bringing in synergies buying out small local players more interested in the EPC (engineering, procurement and construction) play,” Mohapatra added.
India’s ambitious bailout plan for state government-owned distribution companies announced in September last year is also expected to help improve the finances of state electricity boards and hence their ability to procure power.
“The scheme has been successfully implemented in Tamil Nadu, UP (Uttar Pradesh), Rajasthan and Haryana. FRPs (financial restructuring plans) have also been finalized for the states of Bihar, Jharkhand and Andhra Pradesh. Rationalization of tariffs has already been carried out by 24 SERCs (state electricity regulatory commissions)/JERCs (joint electricity regulatory commissions),” the power ministry said in a statement on Monday.
NSL Power, which plans to invest $45 million to set up new wind farms in Maharashtra, is planning to raise around $15.75 million from the International Finance Corporation.
NSL Renewable Power Private Limited is the ‘Sponsor’ for Jath Wind Energy Private Limited. IFC is an equity holder in the Sponsor, holding 7.9% on a fully diluted basis.
According to company's project disclosure, NSL Power is planning to set up a 40MW wind power plant in Vaspet, Sangli District of Maharashtra through an SPV called Jath Wind Energy Private Limited. The project company has been setup for the sole purpose of construction, operation, and maintenance of the 40 MW project and will not have any other operations.
The Project is expected to be commissioned by March 31, 2014. The off-taker will be Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), a state owned utility.
INOX Wind Limited (INOX), a wind turbine manufacturer and project developer (and a group company of an IFC investee company Inox Renewables Ltd), will be developing the project on a turnkey basis – from design to construction to commissioning, which includes the micrositing, land acquisition, obtaining statutory approvals, WTG supply, and EPC and O&M.
Investment in the project is estimated at about $45 million equivalent and the proposed IFC investment consists of an IFC ‘A’ Loan of up to $ 15.75 million equivalent subject to a cap of 35% of the total project cost.
The balance debt financing of up to $15.75 million equivalent is proposed to be arranged from other Indian lenders by the Sponsor or through the IFC syndicated loan products.
State-owned Coal India Ltd (CIL) will invest Rs 7,600 crore to develop Kusmunda mine to a production capacity of about 50 million tonne per annum — the largest in the country. At present, India's largest mine has a total production capacity of 35 mt.
If achieved, CIL officials said this South Eastern Coalfields Ltd (SECL) mine would be one of the largest in the world. "At present, there are open cast mines with capacities of about 40 million tonne in China, but if SECL manages to expand its present capacity from 15 to 50 million tonne in the next few years, it is likely to be one of the largest globally," said a senior CIL official, requesting anonymity.
"The plan includes ramping up railway capacity for evacuating this coal. The investment figure is included in the project cost. The production capacity of 50 million tonne will be achieved through existing techniques of shove-dumper mix and in-pit conveyors, which will transport the coal from the mine to the stockyard," he added. At present, Gevra under SECL, which is a subsidiary of CIL, is the largest in India. It has a total production capacity of about 30 mtpa.
CIL has 148 projects at various stages of implementation of which 90 have already received forest and environment clearance, and 134 are expected to contribute 334 million tonne by 2017.
The company has identified 126 new projects with a targeted capacity of 438 million tonne per annum in the Twelfth Five Year Plan period. Project reports of 28 of these have already been prepared, with 60 projects expected to contribute 88 million tonne by 2017.
Coal demand is expected to grow by 7.09% till 2016-17 and total demand for coal during the period will be 980 million tonne, up from 769 million tonne during 203-14. By 2017, domestic production is likely to touch 795 million tonne of which Coal India is expected to supply 615 million tonne — 77% of total production.
Ministry of New and Renewable Energy has informed that during the years 2010-11, 2011-12 and 2012-13 an estimated investment of around Rs. 74,629 crore was made in renewable energy sector.
It includes an expenditure of around Rs. 10,329 crore from Central Plan Outlay of Ministry of New and Renewable Energy, Government of India.
Department of Atomic Energy has informed that total amount of investment made in the Nuclear Energy Sector over the last three years is as under:
The amount is inclusive of Government Support and Internal and Extra Budgetary Resources under Demand No.5 Nuclear Power Schemes.
Department of Atomic Energy has informed that the total Government spending for the development of the Nuclear Sector over the last three years.
This amount is inclusive of Plan and Non-Plan Budgetary Support and Internal and Extra Budgetary Resources under Demand No.4 Atomic Energy and Demand No.5 Nuclear Power Schemes. This also includes the expenditure incurred for the Research & Development activities carried out by various Constituent Units of the Department as well as Autonomous Bodies. Apart from the projects and schemes related to Nuclear Power Programme, the spending includes projects on radiation technologies and advanced technologies and their applications, schemes on basic and applied research and exploration, mining and milling of uranium and other fertile materials, industrial scale production of nuclear fuel and heavy water and infrastructure and housing. The activities of research-education linkage, research on cancer, cancer medicine, implementation of atomic energy in the field of agriculture, nuclear waste management are also included in the above amount.
(*This includes arrears of book adjustment of Rs 5900 crore — Interest on Heavy Water Pool Management — a departmental commercial entity.)
This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Rajya Sabha today.
Smart grid infrastructure investment by 45 emerging nations – including India and China – over the next decade will reach $ 274.9 billion, outpacing developed countries, according to a new study. This investment will be aimed at reducing electricity theft, improving reliability and incorporating renewable energy into electricity grids, the study released by Northeast Group has claimed.
The study – Emerging Markets Smart Grid: Outlook 2014 – found that investments will include smart metering and advancements for transmission and distribution grids. The 190-page study includes a smart grid regulatory country index, scoring all 45 countries.
Already, the 45 countries have deployed a total of 9.5 meters smart meters with two-way communications and this number is set to reach 523 million by 2023.
In 2014 alone, the 45 countries are projected to deploy 5.6 million smart meters. Electricity theft costs these countries $ 47 billion annually.
Investment in distribution network technology, or distribution automation, will cumulatively reach $ 118.8 billion by 2023.
Singapore, Estonia and Poland lead the index, with Slovenia and China rounding out the top five.The study includes regional forecasts from 2013-2023.
These forecasts cover AMI (smart metering), distribution automation, home energy management and information technology.
"Our third volume of this annual study pinpoints where smart grid investments will occur in emerging markets. Large countries such as India and Turkey have provisional smart meter deployment targets and new financing sources are developing," Ben Gardner, president of Northeast Group, said.
Quebec-based Caisse De Depot, one of a world’s largest grant account managers with over $175 billion in assets, has put India on a priority list for infrastructure investments including Renewable Energy Projects, preferring a nation over China for long-term core zone bets.
Last Friday, Caisse De Depot et Placement du Quebec announced a scarcely billion-dollar investment in a Brisbane port, with an eye on capturing a expansion in Asia-Pacific markets like India who increasingly rest on Australia for vicious appetite and vegetable resources. Now, a investment manager for millions of employees in Canada’s Frenchspeaking range of Quebec wants to deposit directly in a Indian market, instead of holding surreptitious wagers like a Brisbane investment.
“There is a singular list of countries where we see GDP expansion and a need for infrastructure investment is high and we trust that is a box in India. So, we have prioritised India among a aim markets we are looking at, where we wish to muster capital,” pronounced Macky Tall, comparison vice-president (infrastructure) during Caisse De Depot.
Caisse is examining “quality” investment opportunities in India’s infrastructure space and is looking for a good domestic partner, Tall told ET, stressing that other Asia-Pacific markets, including China, are not on a strike list yet. “We don’t design to be directly active in China in a foreseeable future. As of now, we are looking customarily during India and Australia where we see expansion opportunities,” he said.
Caisse hopes to announce a “concrete transaction” in India in a nearby future, that could be in sectors like airports, fee roads, appetite era or renewable energy, though is spending time to know a business and regulatory environment.
Caisse De Depot is Canada’s second largest grant account manager and has investments in 53 countries opposite item classes. Its $6.5 billion infrastructure portfolio includes a seductiveness in London’s Heathrow airport, public-private partnerships in Australian hospitals, healthy gas pipelines in Belgium and US and breeze appetite resources of 2,000 mw in North America.
The account manager’s seductiveness in India assumes significance, following final week’s proclamation by a country’s largest retirement account — Canada Pension Plan Investment Board (CPPIB) — to tie adult with Shapoorji Pallonji organisation for a blurb genuine estate venture. CPPIB has taken a 80% seductiveness in a corner try with an initial investment of $200 million.
“Based on a homework, India clearly needs some-more time to understand. The fortitude of business sourroundings is really vicious to us and flighty banking movements are also an issue, from an executive perspective,” Tall explained.
The investment firm, that customarily keeps a time setting of during slightest 10 years for a infrastructure portfolio, is also disturbed about a fortitude of India’s process and regulatory framework. “We would really need good comfort on a regulatory system, generally either eccentric regulators’ decisions are stood by, in a years to come.
This is really vicious for us due to a longer-term horizon,” Tall said, adding that a issues change from item to asset. For instance, in genuine estate, a regard is that unfamiliar investors can’t deposit in land parcels or banks in a form of FDI. In unregulated fee roads, a ability to collect fee from users would matter.
While airports are regulated, it wants to be certain a regulator is eccentric and is authorised to hang to a unchanging view. “Our proceed to infrastructure investments is to group adult with a heading peculiarity internal partner with a lane record of successful investments and a good bargain of a sector. If we are looking during an airfield investment, we would like to partner someone who understands a dynamics of that business,” Tall said, adding that a account has also grown imagination opposite sectors due to a tellurian investing experiences. The account is also open to investments in India’s renewable appetite space though wants to discern if there is good peculiarity information about past breeze conditions in such projects.
The country's largest private power producer Tata Power is exploring various options to raise around Rs 5,000 crore in the next three years.
Tata Power, which has an installed generation capacity of over 8,500 MW, has also embarked on ambitious expansion plans, including setting up projects in Vietnam and Georgia.
For raising funds, the power utility has said that it is studying all possible options.
"Everything is being studied, what is likely and what is not likely, something which we have not reached the decision as yet," Tata Power told analysts in November.
According to the transcript of analysts' call, the company's fund requirement is about Rs 4,000-5,000 crore over a three-year span.
The company's comment came in response to a query about the quantum of funds the company was looking at through various measures.
The fund raising options include possible sale of equity. Without providing specific details, Tata Power told analysts that it would look at all funds, "including debt funds but today we are quite stretched as far as date is concerned".
At the end of September this year, the company's long term borrowings stood at Rs 32,842.24 crore.
"We have funds as of today probably till the first quarter of next year provided all our consumers pay us on time," the company said.
For the six months ended September, the company posted a net loss of Rs 39.73 crore. In the year-ago period, it had a net profit of Rs 62.13 crore.
These figures are after considering tax, minority interest and share of profit of associates.
Tata Power generated 22,738 million units of electricity in the six months ended September, much higher than 14,029 million units produced in the year-ago period.
Foreign investors, especially long-only funds and large renewable players, are either snapping up assets in this segment or setting up projects in India.
Six months ago, this wasn’t the case; promoters weren’t willing to consider an outright sale of their road assets. But with interest costs biting and the rate cycle showing no sign of a turn, infrastructure developers are looking to unlock capital by divesting some of their projects to reduce stress.
FUNDS FLOW
GMR Infra and JP Associates have conveyed to investors they are considering selling road and power assets to unlock capital and lower their respective debts. GMR has already signed two road deals, while JP Power Ventures is in talks with a couple of sovereign funds to sell controlling stakes in its hydro-electric power plants. Of the 80 operational road projects constructed under the public-private partnership (PPP) mode, more than half are considering raising capital through a part or majority stake sale.
In the renewable energy space, large foreign investors, be it sovereign funds, pension funds or large companies, are looking at acquiring operating assets that are relatively stress-free, or setting up new projects. Investment bankers say deals to the tune of $2 billion are in the works and will be announced soon.
Gaurav Gupta, managing director of Macquarie Capital, an investment bank, says: “As more assets are developed and operational, there will be greater interest from long-only funds. We see greater interest today than a few months ago. The interest is across sectors — renewables, transportation, etc. I think we will see deals worth a couple of billion in the next 12 months.”
There is heightened interest in the roads and renewables sector from foreign investors. A couple of months ago, Government of Singapore Investment Corporation invested Rs 1,000 crore in Greenko, a Hyderabad-based renewable energy company.
The company owns and manages renewable energy assets across several Indian states. SunEdison, an American company that owns solar power assets in India, is looking at joint venture partners to set up solar plants in the country. In July this year, GE Energy Financial Services invested Rs 257 crore in Gati Infrastructure’s hydro power plant in Sikkim.
Raja Lahiri, partner for transaction advisory services at Grant Thornton, says, “Clean energy is one of the hottest sectors globally and foreign investors are looking at India because the government is in the process of signing a lot of power purchase agreements in the sector.”
As the government eyes power purchase agreements and considers giving sops to investors, a spate of deals is in the pipeline. The government plans to draw Rs 90,000 crore in investments through four solar ultra mega power projects. Investment bankers say solar power companies such as First Solar and SunEdison are considering setting up solar power plants in India.
Rahul Gupta, director at Rays Power Experts, which operates and develops solar power plants for its customers, says, “We are in talks with some foreign investors and some investment opportunities are expected to open up in the coming months, as the government is expected to sign power purchase agreements in the renewable energy sector. Foreign investors are interested in renewables because the IRR (internal rate of return) works out to 14-15 per cent and even if they hedge for currency risks, the returns are lucrative.”
Also, there are no fuel linkage woes in the renewables space. And, the government is fast-tracking clearances before inviting companies to sign power purchase agreements.
Vedanta Resources will invest $3 billion in the oil and gas sector in Rajasthan in the next three years. With power projects at Jharsouda in Orissa and Talwandi Sabo in Punjab, the $15-billion Vedanta Resources is looking at expansion in the sector
The group is also in talks with the Orissa government to acquire bauxite to manufacture aluminum. Earlier, the gram sabhas in the Niyamgiri area of Orissa had refused to provide land for Vedanta projects.
Aggarwal, who is among the richest Indians and resides in London, said the reduction of land in Niyamgiri for its projects is not a setback to the group. "We are in talks with the Orissa government to provide bauxite to Vedanta for manufacturing aluminum. The bauxite is in very large quantity in Orissa and we are hopeful of getting it." He said the rupee fall has impacted the operations of Vedanta as well. When the 1980-MW power project was conceived in Punjab it was estimated to cost Rs 8,000 crore but with devaluation and other inflationary reasons the cost of the project has gone up to Rs. 11,000 crore.
He said the coal ministry has allocated 7.7 million tonne per annum coal to Vedanta' Talwandi Sabo power project against the need of 10 million tonne coal to run the plant at 100 percent capacity and the rest of the coal will have to be imported and when the need be global tenders will be floated to import coal.
He said Vedanta has invested 20 Billion dollars in India and whopping 16 billion have been raised in foreign capital, which is one of the biggest foreign inflow in India vis a vis total investment.
Aggarwal said as Punjab was lacking in power, which is foremost necessity for the industrial growth in any state, now with Vedanta coming to Punjab to generate power more reputed companies will come forward in the state and will invest here.
Aggarwal said the Vedanta Khushi to help out the girl child will be started in Punjab as well and Balwaris will be opened in the state. We are committed to provide education, health and nutrition to girl child through Khushi, said Aggarwal.
Premier Solar has tied up with Chicago-based renewable energy company New Generation Power to set up solar farms in Andhra Pradesh.
The consortium, which plans to invest $400 million (Rs 2,500 crore) in the next couple of years, has already secured contracts to set up 70-MW capacity and will bid for another 245 MW under the Andhra Pradesh Solar Policy, which aims to build 1,000 MW in renewable capacity.
In the first phase, the consortium will install 70-MW solar farms in 14 locations in the State. "Funds have been tied up and the execution should be completed over the next 12 months," said Karthik Polsani, Premier CEO. The Hyderabad-based company is negotiating with US investors to get low-cost funding, he added.
The consortium has signed a power purchase agreement with the AP Government for 20 years. Mumbai-based WAAREE Group and Premier Solar will be the joint EPC contractors for the first phase.
New Generation , promoted by India-born Chirinjeev Kathuria, will hold a 74 per cent stake, while Premier will have the balance in the joint venture. There will a few more partners as the project implementation progresses, Polsani told Business Line.
New Generation is a diversified global developer, investor, owner and operator of energy infrastructure assets with focus on renewable energy. It is currently developing grid scale projects in Africa, Europe, South America and the Caribbean.
Hydreq Pte Ltd, an arm of Singapore-based energy and infrastructure investor Equis Funds Group (Equis), has invested Rs 120 crore ($18.96 million) more in Dans Energy Consulting Pvt Ltd.
It was the first of its kind PE investment by an overseas fund in the hydro power sector in India. With this, the total investment by Equis in DANS will be Rs 400 crore ($64 million).
Equis earlier invested in two other tranches in Dans in August 2012 and March 2013.
HSA Advocates and Rajah and Tann LLP advised Equis on this deal.
Founded in 2006 by chairman and managing director T Nagendra Rao, Dans Group provides research and consulting solutions to independent power producers. Rao has over 10 years of his 30 years of professional experience in the power sector.
Dans also provides assistance to hydro power project developers in India for activities related to development of hydro electric projects. Its services include technical consultancy, government liaison and statutory approvals, financial advisory, operational assistance, etc.
Dans has several projects under construction in Sikkim on a build, own, operate and transfer (BOOT) basis. It holds a large portfolio of hydro projects and is a developing run of river 193 MW hydro power platform in northern India, of which one project of 96 MW is about to complete.
Equis has been set up by former Asian Development Bank and Macquarie executives to tap investment opportunities in energy and infrastructure sectors across Asia. The firm closed Equis Asia Fund I at $647 million last year, exceeding the firm’s $500 million fundraising target.
Rajpal Chaudhary, former executive director and co-founder of the property management firm Assetz Property Services, is one of the founding partners of Equis and leads its Indian operations. The firm is led by David Russell, a former senior MD at Macquarie Group who led Asian private equity and Greater China. Equis is based in Singapore, with its regional offices located in Delhi, Hong Kong and Chengdu.
The overseas fund invests in a variety of sectors, including renewable and conventional power generation, energy transmission and distribution, energy and agricultural storage and handling, waste and water treatment, and energy, agricultural and general transportation and logistics.
Asian Development Bank has released a Project Data Sheet (PDS) under which it has proposed to invest in Welspun Renewables Energy Limited's (WREL) projects on Solar and Wind Power Development.
As per the PDS, ADB may invest around USD 50,000 into the company in the form of Equity investment.
As said by the ADB
WREL is one of the leading renewable power developers in India. As of November 2013, WREL had 309 MW of operational projects (289 MW of solar projects in Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, and Rajasthan; and 20 MW of wind projects in Rajasthan), 211 MW of projects under construction (119 MW solar and 92 MW wind), and a pipeline of 1.2 GW of projects at various stages of development. The project will help the company reach at least 600 MW of operational projects by March 2016.
ADB proposes the said investment based on the following criteria:
With the project pertaining to expansion of clean and renewable energy and thereby contributing to climate change mitigation efforts by reducing greenhouse gas emission, ADB requires WREL to adopt an environmental and social management system (ESMS) satisfactory to ADB prior to ADB's investment.
While Welspun has agreed to develop its capacity, as desired by ADB, to oversee the ESMS implementation at the corporate and project level, the project proponent will also comply with ADB's Social Protection Strategy and report to ADB on measures taken to ensure the same.
The PDS as released by ADB can be accessed here.
UK's Development Finance Institution (DFI) CDC Group Plc has invested around $225 Million in IDFC Alternatives' second infrastructure fund and renewable energy firm Green Infra.
CDC has invested $25 million in Green Infra, one of India’s largest independent renewable power producers with generating capacity of 387 MW. Green Infra is incubated and owned by private equity funds managed by IDFC Alternatives. CDC's investment is part of a $125 million financing round for Green Infra, where earlier it raised funding from Piramal Enterprises.
Green Infra will use the capital to expand its wind and solar power generation capacity through a combination of organic growth and selective acquisitions. The company has grown its generating capacity to 387 MW across 18 assets in six Indian states, with more than 90% of its generation capacity coming from wind. The CDC investment will allow Green Infra to reach its targeted capacity of 1,000 MW of generating assets by 2016, the equivalent of 5 per cent of India’s current wind capacity.
CDC Group also said that it is committing $200 million to the India Infrastructure Fund 2 (IIF2), run by IDFC Alternatives. The commitment from CDC, which is its largest ever to an Indian investment fund, helped IIF2 reach a first close of $644 million in September.
The fund is expecting a final close at $1 billion by end of 2013. CDC has had a long association with IDFC, as it was an early investor in the infrastructure lender in the 90s and also backed its private equity funds as a limited partner (LP). CDC also backed IDFC’s first India Infrastructure Fund in 2008 by providing $100 million.
CDC is one of the largest investors in Indian private equity funds with over $680 million invested - and $1.1 billion committed - supporting almost 300 companies in the country. Around 28 per cent of CDC’s Indian investment has been in infrastructure.
Original article is posted here.
Neyveli Lignite Corporation Limited (NLC) is expected to invest Rs 29,239 crore in coal and power sectors during 12th plan of which a major share of the investment would into development of power projects.
Sriprakash Jaiswal, Union Minister of Coal today informed the members of Parliamentary Consultative Committee attached to his ministry that out of the total investment, Rs 26,728.40 crore will be for development of power projects while Rs 2,510.70 crore will be for coal projects.
During the period NLC has planned expansion of a number of its ongoing projects which also include mines at Neyveli and Barsingsar (Rajashtan) and power plant at Tuticorin (Tamilnadu).
He said that NLC has also planned to setup wind farm with the investment of Rs 364.75 crore and Solar Power Project with the cost of Rs 13,319 crore.
It is already working on the development of Underground Coal Gasification (UCG) Projects and a UCG project in Raneri, Rajasthan will be taken up through a suitable developer through competitive bidding. UCG projects in Rajasthan and Gujarat will be implemented through a joint venture with ONGC. The government is expecting that the lignite production in the country in 2016-17 is expected to reach 290.16MT.
Participating in the discussion, Members of Parliament (MPs) demanded that during the planning of relief and rehabilitation projects coal companies should consult local elected representatives including the MP.
