New Delhi: Looking to diversify into power generation, state-run Rural Electrification Corporation (REC) plans to set up renewable energy projects entailing an investment of about Rs2,800 crore in the next five years.
“Within four to five years, we should have around 300 to 400 MW capacity in renewable energy. That’s our vision, so that they can contribute significantly to our balance sheet,” REC chairman and managing director H. D. Khunteta told PTI.
“Investments would be around Rs6-7 crore per MW,” he said.
REC, which offers finance for various power projects, plans to enter renewable energy sector through its subsidiary REC Power Distribution Company Ltd.
Noting that plans for renewable energy are at initial stages, Khunteta said the company is in discussions with a number of players for the same.
REC has already approached the Himachal Pradesh government for setting up about five to seven hydro electric projects.
“We will take hydro projects or biomass, which can be completed within an year. We have already approached the Himachal Pradesh government for around 5 -7 projects, mini or small hydro electric projects, which can be completed within an year or year-and-a-half,” Khunteta noted.
He said that REC would like to have projects that have a Plant Load Factor (PLF) of 50% or more. Generally, PLF indicates the average capacity utilization of a particular plant.
In the last fiscal, REC raked in a profit of Rs2,569.92 crore on a revenues of Rs8,256.91 crore.
Khunteta said the company expects to see a growth of 15 to 20% in both revenue and profit in the current fiscal (2011-12).