Vishal Exports Overseas Limited (VEOL), a Gujarat-based private export company, has forayed into the hydro-power sector in Himachal Pradesh by commissioning its first hydro power project in a remote valley of Himachal Pradesh today. The company was established in 1988 as a partnership firm. |
"The 100-Mw project, located in the Ching village of the Rohru valley, is the first private sector hydro power project to be completed in the Shimla district," said D S Mehta, joint managing director, VEOL. |
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"VEOL's subsidiary Hateshwari Om Power Enterprises Pvt Ltd has implemented the project," Mehta added. |
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"The project has been completed at a cost of Rs 5.60 crore and has been funded through internal accruals and a term loan from the Indian Renewal Energy Development Authority (IREDA). The project is expected to generate 5 million units of electricity per year," Mehta said. |
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VEOL has entered into a 10-year power purchase agreement(PPA) with the Himachal Pradesh State Electricity Board (HPSEB) for the sale of power generated at a cost of Rs 2.5 per unit. |
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VEOL plans to set up another 2 Mw hydro power project with an investment of Rs 9.5 crore in Himachal Pradesh, the company officials said. |
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As part of its strategy to focus on the renewable energy sector, VEOL is also implementing wind farm projects in Tamil Nadu and Rajasthan. The company plans to set up a 82.5 Mw wind farm project with an investment of Rs 450 crore in the western or southern region. |
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Outlining the company's growth strategy in the renewable energy sector, Mehta said, "We see an immense growth in the renewable energy generation sector and will definitely benefit from the infrastructure push in India." |
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The company's revenue streams from the renewable energy sector is expected to contribute substantially to the company's revenues in the coming years, he added. |
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VEOL has already commissioned 19 wind turbine generators in Tamil Nadu and Rajasthan, aggregating to 16.20 Mw, at a total project cost of Rs 69 crore. |
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Power deal |
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- The project has been completed at a cost of Rs 5.60 crore and has been funded by internal accruals and a term loan from the Indian Renewal Energy Development Authority
- The company has entered into a 10-year power purchase agreement with the Himachal Pradesh State Electricity Board for the sale of power
- The company also plans to set up another 2 Mw hydro power project, with an investment of Rs 9.5 crore, in the state
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