Orient Green Power Ltd., the wind power unit of the Shriram Group of Industries, has dismissed claims it`s up for sale and said it will add capacity for the first time in three years now that it has additional funds in hand.
"The worst is behind us," managing director S Venkatachalam said, denying market speculation that Orient Green was up for sale. The company plans to add 47 MW of capacity to its existing 50.54 MW wind farm at Tadipatri in Andhra Pradesh. Its total wind portfolio currently stands at 429 MW.
Capacity addition was made possible with the infusion of Rs 250 crore of fresh equity in August last year, with about Rs 100 crore from the Edelweiss Group and the remaining from the promoters, Shriram Ventures Ltd. "We need another Rs 320 crore of debt, of which we have tied up Rs 200 crore from banks, while the rest is also being arranged," said Venkatachalam.
Orient Green posted a loss of Rs 22.7 crore in the first quarter of 2016-17, narrowing from losses of Rs 53.38 crore a year earlier and Rs 158.6 crore in the preceding quarter. The company reported a loss of Rs 342.3 crore in 2015-16.
The wind energy producer attributed the losses to `backdowns` in Tamil Nadu, where distribution companies shut off power supply from producers for fear of overloading the grid. About three-quarters of Orient Green`s total wind portfolio is located in Tamil Nadu, with the remaining in Andhra Pradesh.
"Our problems in wind energy arose mainly due to the lack of grid availability in Tamil Nadu," said Venkatachalam. "We have lost around Rs 250 crore due to backdowns. Had our projects been more evenly distributed across the country, we would have suffered much less."
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