Private firm to invest in wind power
Chennai-based Shriram group has announced to invest about Rs 60 crore in the current year in wind power sector.
The investment was being made both because of the tax benefit (80 per cent depreciation in the first year), as well as the attractive returns post payback period.
The investment would be spread across the three listed finance companies of the group, viz., Shriram Investments Ltd, Shriram Transport Finance Ltd and Shriram City Union Finance Ltd. The group has already invested in the wind power sector and owns 16 windmills in Tamil Nadu and another 17 in Karnataka, with a total installed capacity of about 15 MW.
The current year investments that have been announced would most probably be made in Rajasthan, which has a "very friendly" wind power policy — a 20-year power purchase agreement (PPA), power purchase at the rate of Rs 3.25 per unit with a five per cent escalation in the first ten years, permitted third party sales and wheeling charges of 10 per cent. The group is looking at Jaisalmer as a possible location.
Typically, investments in windmills are paid back in about seven years, and after that, there are enough profits to be made. The maintenance cost works out to roughly about Rs 5 lakh per MW, each MW can produce anywhere between 15 lakh and 25 lakh units, depending upon the capacity of the machine and the location. The cost per unit works out to be very cheap.
A critical factor is the availability of sub-station close-by, both to supply the power needed to start up the machines as well as to evacuate the power generated. All States, except Tamil Nadu, permit investors (or machine manufacturers) to set up their own sub-stations.
The investment would be spread across the three listed finance companies of the group, viz., Shriram Investments Ltd, Shriram Transport Finance Ltd and Shriram City Union Finance Ltd. The group has already invested in the wind power sector and owns 16 windmills in Tamil Nadu and another 17 in Karnataka, with a total installed capacity of about 15 MW.
The current year investments that have been announced would most probably be made in Rajasthan, which has a "very friendly" wind power policy — a 20-year power purchase agreement (PPA), power purchase at the rate of Rs 3.25 per unit with a five per cent escalation in the first ten years, permitted third party sales and wheeling charges of 10 per cent. The group is looking at Jaisalmer as a possible location.
Typically, investments in windmills are paid back in about seven years, and after that, there are enough profits to be made. The maintenance cost works out to roughly about Rs 5 lakh per MW, each MW can produce anywhere between 15 lakh and 25 lakh units, depending upon the capacity of the machine and the location. The cost per unit works out to be very cheap.
A critical factor is the availability of sub-station close-by, both to supply the power needed to start up the machines as well as to evacuate the power generated. All States, except Tamil Nadu, permit investors (or machine manufacturers) to set up their own sub-stations.
The Hindu
