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.
Out of the 12 units, the company has sold its 20 MW biomass plant near Kolhapur in Maharashtra to Singapore-based Sindicatum Captive Power for which it received Rs 81 crore.
“We have outlined a strategy to monetize some of the biomass assets and to use the funds generated towards supporting profitable business units. The rationalisation of assets is progressing well,” he said.
Venkatachalam further said significant progress has been made on the sale of Sanjog unit in Rajasthan and talks are underway for the sale of three biomass units.
“We expect another 5-6 units to become profitable in the long-term. We will get about Rs 50-60 crore of equity from the sale of these assets in the next few months”, he further mentioned.
Venkatachalam further noted that upon completion of divestment, resultant transfer of debt as well as receipt of sale proceeds, the company will enjoy a stronger balance sheet position which will allow it to invest necessary working capital towards elevating the performance of high potential units whose operations have higher profit.
The company has about Rs 2,000 crore of debt on its books.