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Greenko to acquire Lanco hydel projects for €77 m

The Hindu Business Line:  February, 2014

Hyderabad: Renewable energy company Greenko Group Plc will acquire the 70-MW Budhil hydro power project and two others of 5 MW each – all in Himachal Pradesh – from Lanco Infratech Ltd for €77 million (about Rs. 650 crore).

These acquisitions will raise the Hyderabad-based company’s capacity to 546 MW. It expects to increase the total capacity to 700 MW by March 2014, thereby nearly tripling the capacity during the fiscal.

Greenko, which is listed on the Alternative Investment Market of the London Stock Exchange, plans to fund the acquisition from project finance debt and internal resources. It is on track to be a 1000 MW (I Giga Watt) company during 2015. “This is an attractive deal for shareholders as it offers strong returns. This acquisition, combined with the wind farms we expect to commission in coming months, will take us to over 700 MW by the start of 2014 monsoon (June-July), compared to 244 mw a year before,” said CEO Anil Chalamalasetty.

The company’s strategy is to create a diversified hydropower and wind portfolio, he added.

The Budhil project is fully built and is completing the stabilisation phase. The power generated from the plant will be sold through an open market power purchase agreement. On an average, the project expects a plant load factor of 57 per cent. Greenko expects the revenue to flow from the next fiscal.

Greenko will now have 12 hydel projects operating in the Himachal Pradesh cluster with a total capacity of 141 MW.

In addition, four wind farms of 151 MW are expected to be commissioned in five months.