Lanco Infra bets big on solar biz, eyes $300m annual rev - CNBC-TV18 -

After acquiring Australian coal mining company Griffin, Lanco Infratech is now betting big on the solar business. The company is looking at USD 300 million of annual revenue from its solar SEZ and hopes to list its solar biz in two years, reports CNBC-TV18’s Mehak Kasbekar and Malvika Jain.

It is all stones and boulders now but this is where India's first solar SEZ is set to take shape. Lanco Infratech plans to invest Rs 3000 crore to set up a solar photovoltaic manufacturing unit over 250 acres at Rajnandgaon, Raipur in the state of Chattisgarh. The SEZ will have an annual manufacturing capacity of 250 Mw photovoltaic cells and aims to meet 15% of India's demand for solar energy equipment. But the big bucks will flow in from abroad, as the company plans to export 50% of the equipment at competitive prices to Europe and USA.

L Madhusudhan Rao, Chairman, Lanco Infratech said, "Solar for us is an independent company. That is how we want to position this company. We want to bring in this independence from 2-3 yrs from today. at some point of time we may separate this and list this."

The project, being funded with a 75:25 debt-equity ratio, involves an initial investment of 1,370 crore rupees in the first phase that is expected to be completed in 15 months. The manufacturing unit shall be fully commissioned by 2014.

Rao said, "Gas today has become little bit tricky. There is going to be 50-60 mmscmd of gas available in the next 3-4 yrs and we don't see much scope beyond that in short to medium term.”

The company is restructuring its business to create a separate power vertical. Lanco has a long-term plan to increase its power generation capacity from nearly 2,100 MW to 15,000 mw by 2015. The company may also look at listing the arm soon.

Source: Lanco Infra bets big on solar biz, eyes $300m annual rev - CNBC-TV18 -

Haryana to be power self-reliant by ’12: CM

Haryana chief minister Bhupinder Singh Hooda on Wednesday said that efforts were being made to make the state self-reliant in power by 2012. The CM also announced that there was a plan to set up 1,500 mw gas based power plant in Faridabad.

The CM, who was addressing the Republic Day function after unfurling the tri-colour in Kaithal, said that the state government had inherited the shortage of power, therefore, a target was set to generate 5,000 mw of power and work to set up four thermal projects was started. The power generation capacity of the state has increased to 3,480 mw as from 1,587 mw in 2004-05.

Hooda said that water conservation being the top-most priority of the state, the year 2011 was being observed as ‘Water Conservation Year’. A number of steps were being taken to conserve water and 90% subsidy was being given on drip irrigation and sprinkler sets for horticulture. He said that under the National Horticulture Mission, the scheme to have community ponds was being effectively implemented and the state government was giving 100% subsidy on construction of ponds under the scheme.

The CM reiterated the commitment of his government to get states’ due share of Ravi-Beas waters through Sutlej-Yamuna Link canal. He said that the water courses were being brick-lined and new canals were being dug to ensure supply of irrigation water to every field in the state. The state spent Rs 482 crore to improve and expand irrigation facilities in district Kaithal during last six years.

Hooda said that all-round development has been made during last about six years and this has infused a new confidence in the common man as well as farmers and labourers were now happy. While eulogising the UPA government for implementation of a number of people-friendly schemes and initiatives, Hooda said that with the Centre’s agri- loan waiver scheme and state’s power bills arrears waiver scheme the farmers were benefited to the extent of Rs 4,000 crore as their payments of Rs 4,000 crore were waived off.

He said that the state had reduced the interest rate on agriculture loans to as less as 4%.

Hooda said that the state governments’ land acquisition policy and its R&R policy have come out as a model for the whole country. The royalty and the compensation amount in the state are maximum in the country, while the royalty system has been a unique experiment, he further added.

While referring to other farmer-friendly initiatives and plans of the state, Hooda said that the state government has set up a Farmers’ Commission and a centre of excellence for vegetables at Gharaunda. He said that Lala Lajpat Rai University of Animal Sciences at Hisar, centre of excellence for fruits at Sirsa, terminal market for fruits and vegetables at Ganaur were being set up.

The CM said that the state government has implemented new industrial and investment policy, which would create more job opportunities for the youth and more industries would be set up in industrially backward areas of the state. He said that the state has become number one state in terms of per capita investment, which was at 14 th place six years ago. In per capita income also, the state has become second state after Goa.

Hooda also referred to the number of steps taken by the state government for strengthening the infrastructure and health services, implementation of schemes for rural and urban development and efforts being made to develop Haryana as an international level education hub and sports power house.

Source: Haryana to be power self-reliant by ’12: CM

RPower to increase capacity of its mega projects by 50%

RELIANCE Power, the flagship company of the Anil Ambani group, plans to expand four large coal-fired power projects by 50% to generate an additional 8,000 MW of power, which may be sold at more attractive merchant rates, company sources said. 

The company will scale up three ultra mega power projects of 4,000 MW each at Sasan, Krishnapatnam, and Tilaiya. Similarly, it will expand the Chitrangi plant in Madhya Pradesh, for which Reliance Power plans to use coal from mines dedicated to the Sasan project. 

The company has already applied for environment clearance for additional 1980 MW in Sasan and plans to seek approvals for the rest. 

A company spokesman said Reliance Power would seize opportunities to maximise value from its existing resources, but he declined comment of specific expansion plans. "It is our constant endeavour to optimise the utilisation of our existing resources like land, water and fuel linkages across all our projects to create and enhance the value for our stakeholders," the spokesman said. 

In the Chitrangi project, Reliance Power has tied up power purchase agreements (PPAs) for 1,241 MW out of its 4,000 MW capacity. The balance as well as the planned additional capacity of 2,000 MW each at Chitrangi and the three UMPPs would be available for sale at market-driven price, which analysts say are more than double the rates agreed in the PPAs. 

Another official of Reliance Power said that since these projects have all approval and basic infrastructure, such as land, is already in place, it would be much easier to increase generation in the shortest period. "Had we started for a fresh projects with similar size, it would have taken much longer time,” he said. 

The company aims to commission the first unit of 660 MW in Sasan in November 2012 and one new unit every subsequent quarter. The entire project of 6,000 MW in Sasan will be fully commissioned by December 2014. Similarly, the first unit of 660 MW in Krishnapatnam will be commissioned in September 2013 and it will be fully commissioned by December 2015. 

As per the new plan, each of these four power projects (three UMPPs and Chitrangi) will have nine turbines of 660 MW each, the official said. 

In November 2010, the company placed orders worth $8.2 billion with Shanghai Electric Corporation for buying 42 super critical turbine of 660 MW each, each turbine costing around $200 million. Of this, 36 turbine will be installed in these four projects.

Source: Article Window