Birla Power in generation push
Birla Power Solutions Ltd, part of the Yash Birla Group, is venturing into the power generation sector. It will invest around Rs 5,000 crore to set up a coal-based thermal plant and solar power plants in various states.business Updated: Mar 17, 2010 22:27 IST
Birla Power Solutions Ltd (BPSL), part of the Yash Birla Group, is venturing into the power generation sector. It will invest around Rs 5,000 crore to set up a coal-based thermal plant and solar power plants in various states.
BPSL has floated subsidiaries Birla Urja Ltd (BUL) and Birla Energy Infra Ltd (BEIL) for coal and solar plants with a holding of 51 per cent in each.
BPSL will invest Rs 3,000 crore to set up a 600-megawatt (MW) coal-fired thermal power plant in Maharashtra. It will also invest Rs 2,000 crore to set up 125 MW of solar photovoltaic power plants over the next three years. It will set up a 10 MW solar plant in Haryana, a 5 MW plant in Uttarakhand, another 5 MW plant in Rajasthan and a 50 MW plant in Andhra Pradesh. The company plans to commission these plants in two to three years.
Yash Birla, chairman of Yash Birla Group, said, “The company envisions to be a significant player in the area of power utility segment in India and proposes to develop an environment- friendly energy portfolio that will support energy requirements for propelling economic growth”.
The company plans to fund the project through a mix of debt and equity where 70 per cent will be debt and the rest equity. Birla said, “The funding for all these ventures will be through internal resource allocation and various other forms like private equity, institutional loans, GDRs and a follow-on public issue”. The company will use 50 per cent of the power from the coal fired plant for captive consumption for its plants in Maharashtra and the rest will be sold to state governments. The power from solar plants will be sold to the respective state governments.
BPSL, which collaborated with Yamaha Motor of Japan for gensets, will not tie up with any foreign partner for these plants. “We are not going to tie up with any foreign company, only equipment will be imported for power plants,” he said.