All Green Energy India chairman and chief executive officer Kamlesh Tejwani said, The investment will be raised through debt and equity at 70:30 ratio and negotiations are on with local banks and private equity players for raising funds.
Initially in the first quarter of 2009, the company will start constructing three projects, each in Tamil Nadu, Karnataka and Madhya Pradesh, he added. Each project involving an investment of Rs 50 crore will commence operation by March 2010. The remaining projects will be completed in the next two to three years, he added. Each plant will have generation capacity of 6.5 mega watt. The power plants will be set up in close proximity to the biomass resource as well as to the state grid through which the electricity generated will be sold, he added.
Each energy plant would require around 50,000 tonne biomass raw material per annum. All Green Energy has also signed MoU with ITCs agri business division for biomass procurement.