ManagementShriram group firm concludes financial closure
Oriental Green Power (OGP), a renewable energy generation company, promoted by Chennai-based Shriram EPC, has said that the company has concluded financial closure to the tune of Rs 400 crore to set up six bio-mass based power plants.
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Speaking to Business Standard T Shivaraman, managing director and chief executive officer, Shriram EPC said that the company was planning to invest around Rs 1,000 to Rs 1,100 crore in eight projects, of which financial closure for six projects is over.
Majority of the lenders are public sector banks, while there is only one private sector bank, Yes Bank. The banks had come forward to give debt to the tune of Rs 400 crore, said Shivaraman.
OGP had set a target to set up bio-mass based power plants to generate 130 Mega Watt (MW) of power by March 2010. The company expects 15-20 per cent of the business is likely to come from bio-mass business.
In Tamil Nadu, already two plants are commissioned in Dindugal and Pudukottai with an investment of Rs 40 crore in each plant. The third plant which is coming up near Vandavasi and fourth one in Chibbarbarod plant in Rajasthan are likely to commence operation by September.
He added, bio-mass power plants have to source agriculture waste, main raw material, from the farmers within 40-50 kms radius.
These raw materials are not available in huge number of quantity so upgrading or installing power plants beyond 7.5 MW is not viable, said Shivaraman.
Shriram EPC is a leading service provider of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and municipal service sector projects throughout India and is also a manufacturer of 250 KW wind turbine generators (WTG).