Konark earmarks Rs1k crore for foray into power biz

Konark earmarks Rs1k crore for foray into power biz

Mumbai: Business conglomerate Konark Group has earmarked Rs1,000 crore for foray into power sector where it plans to generate 100 MW of renewable energy by 2013, a top company official said.

“There is a huge potential in the power sector, especially in the renewable energy segment," the company’s director Shonit Dalmia told PTI here.

“Currently, this segment is at a very nascent stage and we think that it is the right time to enter it. We plan to make an investment of Rs1,000 crore by FY13 for setting up plants for generating 100 MW of renewable energy," Dalmia said.

The 100 MW of power would be a mix of solar and wind energy, he said.

The company has already received an allocation of 5 MW in Gujarat to set up a solar energy power project and expects to complete its construction by end-2011.

The power foray will be funded through a mix of internal accruals and debt. The company is also exploring the private equity option.

“Initially, we plan to fund our projects through debt and internal accruals. Once a few projects are commissioned, we will look at the PE option. A few PE firms have already approached us," Dalmia said.

With not many players present in this segment, the company scents an immense potential here, giving it an opportunity to become a renewable energy independent power producer (IPP), he said.

“Apart from Gujarat, we also want to set up plants in Rajasthan and Maharashtra. We have applied for necessary approvals to set up a 50 MW solar plant in Rajasthan," he said.

The company would be deploying international technology partners for EPC for the Gujarat project, he said. “We are also in advanced stages of finalising wind power projects with installations likely in the southern and western parts of India," Dalmia said.

The group is also exploring opportunities to generate power through other clean-tech models for spreading its presence in the power sector, he said.