Independent power producer Mytrah Energy Limited is set to double wind power generation capacity by June 2013 with the addition of 294 MW to its existing capacity of 316 MW.
The AIM London Stock Exchange-listed IPP is investing Rs 2,000 crore in the ongoing capacity addition. It has thus far invested Rs 2,400 crore in setting up wind farms across four States in the country from 2010.
The company raised about $115 million through mezzanine financing (a hybrid of debt and equity financing, typically used to finance expansion projects) in 2011. Its investors include India Infrastructure Fund, IDFC and PFC. “Apart from this we raised about $263 million as senior debt,” Ravi Kailas, Chairman of Mytrah Energy, based in Hyderabad, said. (Senior debt is money that a company must repay first if it goes out of business.)
Addressing a press conference, Ravi Kailas said the company will add 24 MW within weeks and another 270 MW, now at various stages, by mid-2013, thereby doubling capacity.
“This will make us the largest wind energy-based IPP in the country,” Vikram Kailas, Managing Director, said.
“The IPPs long-term plan is to create wind power farms with a total installed capacity of 5,000 MW at an outlay of Rs 30,000 crore by 2017. Funding is not a problem. We already have begun to make profits within two years. In the first half of this year, we had a turnover of Rs 165 crore and a net profit of Rs 40 crore. As we add capacity, the cash flows will enable us to take up new projects,” Ravi Kailas explained.
The equity component of Rs 600 crore for the Rs 2,000-crore expansion has been tied up.
The debt component will be closed shortly, Vikram Kailas, said.
A tariff of Rs 4.50 and above per unit works out as viable for wind projects, they said.