Subhash Chandra's Essel Infraprojects is evaluating monetisation of its waste-to-energy business as part of its deleveraging exercise, people close to the development told FE.
Subhash Chandra’s Essel Infraprojects is evaluating monetisation of its waste-to-energy business as part of its deleveraging exercise, people close to the development told FE.
The company has 3 operational and around 12 under construction projects across the country.
The firm is in talks with suitors operating in the municipal solid waste disposal segment, and expects an early sale of assets to meet the September deadline of the lenders. The projects are valued at around Rs 2,500 crore to Rs 3,000 crore at a price of Rs 250 crore per project, sources said.
The monetisation process is part of larger exercise undertaken by the group to pare its over Rs 20,000 crore debt before the September deadline of the creditors.
Although the names of interested parties could not be verified as the email sent to the company did not elicit any response till the time of going to the press. Some of the players operating in the space who could be interested are Ramky Infrastructure, SPML, and Doshion, among others.
Essel Infra has waste-to-energy projects across the country with Andhra Pradesh having six of these projects, Madhya Pradesh has three (Jabalpur, Bhopal and Indore), one in Gujarat (Surat), one in Punjab (Amritsar) and one in Jharkhand (Ranchi), among others.
The awarded projects will have a maximum generation capacity of 11 MW by churning around 300-600 tonne per day (tpd) of waste.
Last year, the company secured three waste to energy plants in Andhra Pradesh that comprised R-Grate type waste combustor and flu gas treatment systems with a processing capacity of 330 tonne per day and a power output of 600 kilo watt.
Experts believe the biggest challenge with treatment of Indian waste is their low calorific content as they are not properly segregated, besides other than big cities, sourcing 300 tonne to 600 tonne of waste becomes challenging making economies of scale difficult for companies operating in this segment.