Mytrah Energy Limited is busy adding fresh capacity to its wind power generation portfolio across several States including Andhra Pradesh,Tamil Nadu,Karnataka and Maharashtra.Mytrah currently holds a wind power generation asset portfolio of 310 MW and is on course to installing a 1 GW capacity.
In a recent interaction with Business Line,Mr Vikram Kailas MD of Mytrah Energy said that"We prefer to set up our own plants rather than make acquisitions.This helps us have better control of the business.Wind power generation tariffs are getting better and anything around INR 5 a unit suits the sector.The Government should encourage generation based incentive for projects commissioned after March 2012."
Excerpts from the interview:
Q-What is the current installed capacity and what are your plans for 2013?
A-Mytrah now has 310 MW of operating capacity and is set to close the year with 340 MW.It expects to add another 500 MW in financial year 2014.In Andhra Pradesh,we have installed capacity of 63 MW and intend to add about 140 MW by March 2014,taking it up to over 200 MW.
Q-How will you meet the funding requirement and what is the capex?
A-The capital cost of assets is the lowest in the industry.We have a capex plan of INR 3,300 crore for FY 2014.Of this,30%will be in Andhra Pradesh.We will continue to use innovative funding options to meet our requirements through good relationships with a clutch of 18 banks.Despite gloom in the finance world,where banks are being conservative,we have been offered conservative interest rates.
Q-Any plans for private equity investments?How much have you raised thus far?
A-We have not raised funds through private equity.We will evaluate that requirement as it arises.We have raised INR 1,100 crore of equity and INR 1,800 crore of debt and are finalizing debt of INR 1,200 crore.As more projects get set up,we will have cash-flows that will add to our funding.
The Central and State Governments are focusing attention on wind and solar power generation.Yet there seem to be problems.
Wind power has to be mainstreamed as it is the cheapest source of energy.Recent bids for thermal coal plants in Uttar Pradesh support this argument.Governments,therefore,need to support wind power producers.The latest tariff of INR 4.7 per unit from Andhra Pradesh Electricity Regulatory Commission for wind is encouraging,but it could have been INR 5 per unit.
