Comments
Orient Green Power Ltd's 10-MW biomass-based power plant at Pollachi, Tamil Nadu, began generating electricity today.
The Rs 210-crore company, part of the Chennai-based Shriram group, is an independent power producer that is exclusively into renewable energy.
This is the first of the six biomass-fired power projects that Orient Green will put up between now and October, the company's Vice-Chairman and Executive Director, Mr T. Shivaraman, told Business Line today.
These projects will add 60.5 MW to the company's existing 40.5 MW of biomass-based power capacity.
In addition, the company expects to add over 50 MW of wind power capacity over the next couple of weeks, and another 50 MW by March. Today, the company has wind assets of 178 MW.
The company had planned to add the 100-MW of wind power before summer, but could not do so because the evacuation infrastructure at the chosen site — Kalangal, near Tirunelveli in southern Tamil Nadu — was very poor.
If the company had put up the windmills, only a part of the generation would have gone on the grid. Therefore, the company decided to shift to other sites — the delay in adding capacity was because of this, Mr P. Krishnakumar, Managing Director, Orient Green, said.
With all these additional assets, the company expects to end the financial year with a total capacity of 445 MW in India, and another 21 MW abroad (10.5 MW each in Croatia and Sri Lanka).
These projects will earn the company either carbon credits or ‘renewable energy certificates', which can be traded in the market. The company did not wish to give any projections in this regard.
However, a recent research report of MSFL, says that it expects Orient Green to generate 906 million and 1,425 million RECs in the current year and next year. The Government has fixed the floor and ceiling prices of RECs at Rs 1.50 and Rs 3.90 a unit.
Based on its interactions with the management of Orient Green, MSFL projects a turnover of Rs 450 crore and a net profit of Rs 70 crore for the company for the current financial year. Last year, its net profit was Rs 9 crore.
On the NSE today, the shares of Orient Green closed at Rs 17.35.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.