The Hindu Business Line : Auro Mira Energy may expand equity base

Chennai, June 1 The Chennai-based Auro Mira Energy Company Pvt Ltd (AMECPL) plans to expand its equity base to support diversification of its business. The independent wind power producer has forayed into hydro and biomass power plants. The company owns power plants and sellsenergy.

The Founder CEO of AMECPL, Mr N. Srinivasan, told Business Line that the company has set targets for its three strategic business units — wind, hydro and biomass, which will take it to 1,500 MW in five years.

At present Baring Private Equity holds majority stake in AMECPL. Since the company plans to invest $900 million to develop, own and operate 1,500 MW of clean energy and set up about 15,000 acres of energy plantation primarily for captive consumption, it was going for a second round of funding, he said.

Growth path

AMECPL began its business by acquiring a sick unit, a 7.5 MW biomass power plant in Pudukottai. After refurbishing, it achieved close to 90 per cent plant load factor from 30 per cent earlier.

In the first phase the company plans to generate 100 MW through biomass power plants. A 10 MW biomass plant in Madurai would start operations in July. It is commissioning two 15 MW plants in Tirunelveli and Kanyakumari, which will go on line in March 2009. Another 50-plus MW power plant would come up in Karnataka, he said.

On its venture into hydro power , Mr Srinivasan, said the company was looking at setting up a group of plants totalling 150 MW, in Karnataka, Uttarkhand, Orissa and North-eastern States.

Under wind energy business unit, it has created three verticals — wind energy infrastructure development, independent power project and manufacturing wind turbines. The company has acquired 300 acres land in Tirunelveli, where it has installed a 101-metre mast to study wind velocity. Soon it will acquire 600 acres more, which would totally support the 1,250 MW of windmill capacity, he said.

Investors find the potential for renewable energy to earn carbon credits attractive. “However, it takes lot of time before it actually gets credited. Till such time it is difficult for the companies to run with the predetermined PPA as the tariff is technically linked to other forms of energy, without considering uniqueness of biomass plant,” he said.

AMECPL is also mulling options to foray into production of bio-diesel, he said. In the near future the company will list in stock exchanges overseas, “for better valuation due to renewable energy”, he added.

More Stories on : Diversification | Non-conventional Energy | Tamil Nadu

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