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The Rs 5,800-crore Shree Ganesh Jewellery House Ltd (SGJHL) has bagged a 25-MW solar power project in Odisha.
According to Mr Nilesh Parekh, Chairman, SGJHL, the project will be executed by Kolkata-based Alex Green Energy in which the company holds a majority stake. Alex Green is co-promoted by the Sureka Group.
“Alex Green won the right to develop a 5-MW project in a solar auction in Odisha. The company in fact emerged as the lowest bidder by quoting a rate of Rs 7 a unit,” Mr Parekh told Business Line .
Under the rules of the Odisha tender, the least bidder will be offered all the 25 MW at the winning price. Alex would be commissioning the entire 25 MW shortly, he added.
The total investment including the debt component for commissioning the solar plant in Odisha would be close to Rs 175 crore and would be completely funded by Alex, he said.
With a view to diversifying into solar power business, SGJHL had recently acquired a controlling stake in the two companies – Alex Astral Power Ltd and Alex Spectrum Radiation Ltd, co-promoted by Sureka Group.
SGJHL invested close to Rs 100 crore for acquiring 55 per cent stake in both these companies. The company had recently commissioned a 25-MW solar plant in Gujarat and a 5-MW solar plant in Rajasthan.
“We have been planning to foray into new business segments for sometime now and infrastructure was one of the sectors we had identified for expansion. Solar power is one of the safest businesses in the infrastructure space at present so we decided to venture into this,” Mr Parekh said.
According to Mr Parekh, power deficit in the country was growing at 18-20 per cent and was as high as 26-30 per cent in some States. “The gradual inching down in the cost of generation of solar power coupled with the upward movement of thermal power tariff makes the business more viable,” Mr Parekh added.
Shree Ganesh also plans to set up solar power projects in Uttar Pradesh and Bihar by entering into power purchase agreement with the respective State governments.
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.
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