Orient Green Power to buy windmills worth Rs 1,200 cr

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Vestas, Gamesa to supply machines.

A file picture of Mr T. Shivaraman, Managing Director of Orient Green Power Company
A file picture of Mr T. Shivaraman, Managing Director of Orient Green Power Company

M. Ramesh

Chennai, Dec. 17

Orient Green Power Company Ltd has placed orders for windmills for 205 MW of installed capacity, worth Rs 1,200 crore.

The company, which raised Rs 900 crore through its initial public offering in September, is buying 135 MW of Vestas machines and 75 MW of Gamesa's.

The company has an installed capacity of 178 MW of wind power.

By May next year – the beginning of the wind season – OGPL will have additional capacity of 200 MW, the company's Managing Director, Mr T. Shivaraman, told Business Line today.

He said that while 155 MW would come out of the orders placed last week (80 MW of Vestas and 75 MW of Gamesa), windmills worth another 40 MW would be purchased from Shriram Leitner, a group company.

Wind capacity

By the beginning of the next wind season, OGPL expects to have 400 MW of wind power capacity, “plus whatever second-hand assets we manage to buy”, ready to take in the winds.

The 400-MW, Mr Shivaraman said, would translate to Rs 320 crore of topline, assuming 25 per cent machine operation (PLF).

biomass-fired plants

In addition to wind power, OGPL will have 80 MW of biomass-fired power plants (including 25 MW of capacity that will be put up between now and the beginning of the next financial year), which would yield another Rs 200 crore of turnover.

Biomass plants, unlike the windmills, work round the year.

IPO funds

Mr Shivaraman said that these capacity additions would be financed out of the IPO funds.

“Till date, the money is lying with us,” he said, adding that there could be a treasury gain of around Rs 10 crore in the current year.

Even apart from treasury gains, the company will be profitable, even though the operations of the biomass plants took a hit due to the untimely rains in Tamil Nadu.

Related Stories:
Orient Green Power — IPO: Invest
Orient Green Power plans public issue to raise Rs 900 crore

(This article was published in the Business Line print edition dated December 18, 2010)
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