Kolkata-based Rs 10,000 crore Shree Ganesh Jewellery House Ltd (SGJHL) plans to exit from the solar power generation business due to objections from its Board.
The company had entered the renewable energy business to diversify its portfolio and to leverage on tariff and tax incentives.
The Jawaharlal Nehru National Solar Mission project targets 1,100 MW grid power including roof-top by 2013. The scheme has announced generation-based incentives of Rs 12 for PV solar and Rs 10 for solar thermal projects.
“We wanted to diversify but there was objection from the Board so we let it be. We may come out of solar power,” said Nilesh Parekh, Chairman, SGJHL. He, however, did not divulge the reasons for the Board’s objection to the company’s diversification.
Shree Ganesh, earlier this year, forayed into solar power generation by acquiring 55 per cent stake in two companies — Alex Astral Power Ltd and Alex Spectrum Radiation Ltd — owned by the Kolkata-based Sureka Group, at an estimated investment of nearly Rs 100 crore.
The solar power generation business was earning revenues and generating profits, he said. “We are generating highest plant load factor from these plants and we are also getting price out of it. The company is self sustaining. SGJHL may come out of solar because the subsidiary is raising its own funds,” he said.
The companies had 30 MW assets already commissioned as of April 2012. The company also commissioned two 25 MW solar power projects in Odisha and Gujarat, and a 5 MW solar power project in Rajasthan early this year.
According to information available on SGJHL’s annual report for 2011-12, the company intends to generate revenues worth Rs 60 crore in 2012-13 through the business.
The company also plans to commission two additional solar power units of 25 MW and 50 MW each, and intends to commission 500 MW in three years through private equity participation and accruals, the report said.
However, according to Parekh, SGJHL will not invest any further in the subsidiary. “The subsidiary is able to sustain on its own. In future Shree Ganesh will not invest in the company,” he told Business Line.