The Hindu Business Line : Shriram EPC arm to set up wind farm in Czech Republic

Chennai, Sept. 2 Orient Green Power Ltd, a subsidiary of Shriram EPC Ltd, plans to set up an 18 MW wind farm in the Czech Republic, Shriram EPC’s Managing Director, Mr T. Shivaraman, told Business Line.

OGPL, in which Shriram EPC has a 40 per cent stake, has a portfolio of 100 MW of wind power in the country . (The rest of the equity is held by two private equity funds, Bessemer and Olympus).

Mr Shivaraman said that OGPL intends to double the wind power capacity in India over the next one year, “only through acquisitions”.

The entry into the Czech Republic would be the first step into the international arena, he said, adding that after the first phase of development in the Czech Republic was over, OGPL would look to expand its footprint in East Europe.

Mr Shivaraman said that the renewable policies in East Europe, just as in West Europe, were clear and favourable. The step into Czech is at an advanced stage, he said.

The company would install 12 machines of 1.5 MW capacity each. The most valuable part of the machines – the turbines – will be produced at Gummidipoondi, near Chennai, by Leitner Shriram, a joint venture of Shriram EPC and the Leitner group of Italy.

For both its wind farm in Czech Republic and its expansion in India, OGPL would need funds, although not immediately.

The company intends to come out with an IPO towards the end of calendar 2010.

Mr Shivaraman said that the Rs 920-crore Shriram EPC would benefit (if and) when the “climate negotiations” lead to transfer of funds from developed countries to the developing. Shriram EPC, through its subsidiaries, is both into the manufacture of equipment (windmills) and development of green power (wind and biomass).

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