Marking its foray into green energy, Hyderabad-based Internet infrastructure company Nettlinx Ltd has acquired a 51 per cent stake in Sri Venkateswara Green Power Projects Ltd for ₹30.5 crore.

Sri Venkateswara Green Power Projects, also a Hyderabad-based company, is setting up a 12-MW renewable energy power plant about 50 km from the Telangana State Secretariat. The project will be operational in about 18 months.

“The acquisition is part of our diversification and expansion plans. We had earlier made investments in real estate, from which we have started giving returns and now we want to invest the money in ventures that will give us assured returns,” Manohar Loka Reddy, Chairman, Nettlinx, told BusinessLine .

Nettlinx will invest the entire ₹30.5 crore over a three-and-half month-period, Reddy added.

Sri Venkateswara Green Power Projects’ proposed power plant will convert waste from Greater Hyderabad Municipal Corporation into energy. The project will be operational in about 18 months, and is expected to generate revenue of about ₹55 crore per annum from the start of commercial operations.

The total cost of the project is about ₹192 crore, of which about ₹57.60 crore would be funded through an equity infusion. Nettlinx will provide ₹29.38 crore from internal accruals, while Sri Venkateswara Green Power Projects Managing Director K Venkateswara Reddy and his associates will infuse ₹28.22 crore.

The rest of the project funding will come from term loans and working capital borrowings, he added.

According to Reddy, the project is viable as the Government has assured delivery of 700 tonne waste per day at the plant site, while power purchase agreement with Telangana power distribution company specifies a tariff of ₹7.40 per unit and is on a must buy basis and also stipulates a minimum guarantee price.

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