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Energy Efficiency Services Ltd expects to deploy a capital expenditure of ₹20,000 crore over the next three years.
Saurabh Kumar, Managing Director of EESL, said, “To meet this capital expenditure requirement over the next three years, we will need to raise debt of about ₹16,000 crore and equity of about ₹4,000 crore.”
“While the equity component will be partly met with promoters of EESL and for the balance equity, we may go in for an initial public offer over the next two years,” he said.
Speaking to BusinessLine during his visit to Hyderabad, Kumar said, “We have been growing at a rapid pace and the numbers show how we have grown over the years. In 2012-13, we had a modest start with revenues of ₹5 crore and this has shot up to ₹2500 crore in 2018-19. Over the next three years, we expect to take the revenues up from ₹2,500 crore to ₹10,000 crore.”
Providing details of the funding that has gone through into the company thus far, he said, “₹860 crore has come into the company through the four promoter State-owned power companies. Subsequently, EESL tied up debt of about $1.5 billion with various multilateral lending agencies including the World Bank, ADB and KFW.
“Thereafter, we also raised about ₹1,000 crore from the bond market. We have various options to raise funds, including an IPO, at a later date as we go along,” he explained.
EESL is a State-owned energy service company (ESCO). Considered to be amongst largest such public ESCO, it is a joint venture of State-owned NTPC Ltd, Power Finance Corporation, Rural Electrification Corporation and Powergrid.
The company started with the Central government Ujala scheme where the focus was on to replace inefficient lights with LED systems and thus far replaced 36 crore bulbs with a saving of about 9000 MW. Thereafter, it has begun to address new areas including solar power, which would require huge funding.
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