Konark Group eyes $30-35 mn private equity investment in power arm

Konark Synthetic Ltd. | Textile | Textiles & Apparels | BSE: 514128 | NSE:

16 Jun 2011 Evaluate

Konark Group plans to raise $30 million-$35 million through private equity placement in its power projects business. Konark Synthetics has set up a subsidiary, Konark Infratech, for foray into power sector. It plans to invest Rs 1,000 crore to set up 155 megawatts of solar and wind capacity by 2015. It would raise around $30 million-$35 million through private equity. In the first round it would raise Rs 40 crore by December at its wind project level, and then raise the balance at the power business holding company. The expansion would be financed through internal accruals, debt and private equity. The company aims to commission 15 MW of solar power in 40 MW of wind energy by March 2012 and subsequently scale up the capacity to a total of 155 MW by 2015. To boost renewable energy in the country, the government, through the National Action Plan on Climate Change set a target of 15% share of clean energy in total generation. The Ministry of New and Renewable Energy subsequently brought down the target to 6% as against the current share of around 4%. The company plans to sell the power from its planned units to various state electricity boards.