Financial Daily from THE HINDU group of publications
Wednesday, Aug 24, 2005
Financial Daily from THE HINDU group of publications Wednesday, Aug 24, 2005 |
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Corporate
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New Projects Industry & Economy - Non-conventional Energy TNPL plans to expand wind farm capacity R. Balaji
Chennai , Aug 23 TAMIL Nadu Newsprint and Papers Ltd (TNPL) is expanding its wind farm capacity, which has been a significant revenue source for the company. According to company officials, TNPL is looking at adding 5 MW of wind farm capacity. It will set up three or four 1.25 MW turbines. TNPL, which is in expansion mode, operates a 2.30-lakh-tonne paper mill, which it is now upgrading at a cost of Rs 565 crore through a Mill Development Plan. The company has achieved financial closure for a term loan of Rs 415 crore. According to thumb rule for wind farms, the expansion to the wind farm would mean an investment of up to Rs 20 crore as each megawatt of wind power capacity costs up to Rs 5 crore. This will be in addition to its existing capacity of 21.75 MW wind farm at Devarkulam and Muppandal in South Tamil Nadu. TNPL exports to the State grid the entire power generated from its wind farms. According to the annual report for 2004-05, the company generated over 348.86 lakh units of wind power. The company treats its wind farm as a separate profit centre; it generated a profit of Rs 1.94 crore during the year. The company has consistently expanded its wind farm capacity over the last few years. It added 3.75 MW in March 2004, which took the capacity to 21.75 MW from 18 MW. Non-conventional energy sources have been an important component of TNPL's energy management as a means to reduce costs. The company uses methane and biogas generated from bagasse wash water as fuel in its limekiln and power boiler. The gas substitutes furnace oil and solid fuel such as coal. In 2004-05, TNPL saved Rs 2.01 crore on furnace oil and brought down use of imported coal by 159 tonnes. The company is looking at carbon trading on this project, which would bring it revenues under the Clean Development Mechanism.
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