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KSK Energy Ventures may raise up to Rs 1,200 crore debt to fund its wind energy projects across the country, sources close to the development said.
The company, which currently has around 71 MW wind energy projects under operation, is mulling to set up another 250 MW projects by the next wind season (May).
“The company is talking to various suppliers, including Chinese suppliers like Dongfang, Shanghai Electric in China and Suzlon in India, for the wind energy machinery. Each MW typically cost Rs 5.5 crore to Rs 6.5 crore. Around Rs 1,500 crore is required for the total project on 80 per cent debt and 20 per cent equity basis. The company prefers to raise the debt though Dollar Denominated Debt,” a source told PTI.
The KSK group, which is targeting at around 8000 MW power generation by FY13 is aiming to generate 5 to 6 per cent of that though renewable.
The Group has incorporated a subsidiary KSK Green Energy Pte Limited in Singapore to make direct investment in new renewable power generation opportunities.
The Group with its implementation of more than 900 MW by March 2011 would achieve a critical mass of project execution capabilities in India and hope to leverage the same in the execution of the 3.6 GW power project in Chhattisgarh. The first 600 MW of the Mahanadi power project is expected to synchronise with the Grid in the first quarter of 2012-13.
KSK Energy has already signed a deal with Dongfang Electric Corporation, chain-based power equipment maker for procuring 250 MW of wind turbines. The value of the deal could be in the range of $450 million, according to industry sources.
Similarly, the company has also entered in to an agreement recently with Shanghai Electric for supply of 125 units of 2 MW wind turbines.
The company, however, is looking at a single supplier which will be able to supply at least 200 MW in this fiscal.
“There are some problems with Chinese suppliers. They need to get regulatory approvals from Indian Authorities. Whoever gets the approvals first, the Company may go with them. However it is unlikely that any single supplier would fulfil the requirements. So as an alternative, Suzlon is also contacted,” a sources explained adding identification of land and agreements are all in advanced stage.
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