BM Munjal-led Hero Group on Wednesday announced its entry into renewable power generation business through new company Hero Future Energies. The company will invest Rs. 7,000 crore by 2016-17 for executing clean energy projects.
"Hero Future Energies, an independent power producer plans to develop over 1,000 megawatt (MW) of renewable energy projects by 2016-17... Every megawatt of wind power requires close to Rs. 7 crore and solar about Rs. 8 crore per megawatt," said Rahul Munjal, managing director, Hero Future Energies.
Hero Future Energies is a wholly-owned subsidiary of India’s largest two-wheeler maker.
Hero Future Energies will operate across various verticals of renewable energy such as wind, solar and hydro powers. The company, which commissioned a wind pilot project of 37.5 MW in Rajasthan, in October last year, plans to take this capacity to 800 MW by 2016-17.
It also plans to have a solar power generation capacity of 150 MW and 50 MW of small hydro units by 2016-17.
Asked whether the company is looking at exploring international markets, Munjal said, "We also hope to grow across borders in the wind and solar power business as a multi-locational and multinational group".
The firm will develop 100 MW of wind power capacity in 2013-14. It is already looking at acquiring small hydro power projects.