Bhoruka Power charts Rs 325cr spread

Bangalore-based Bhoruka Power, which specialises in mini-hydel and wind-based power projects, plans to step up its wind power generation capacity from the existing 13Mw to 72Mw over the next two years.

At present, the company's wind farms are located in Karnataka and Rajasthan.

"This fiscal, we will add another 9Mw of wind power in Karnataka at an estimated investment of Rs 55 crore. Next fiscal, we will commission another 50Mw with a combined investment of Rs 325 crore," Bhoruka Group Chairman S N Agarwal told Business Standard.

All the wind farms (59Mw) will come up in Chitradurga and Gadag districts in Karnataka.

Bhoruka Power is part of the Rs 150-crore Bhoruka Group and manages 100Mw capacity energy projects (87Mw hydel and 13Mw wind).

The wind power projects proposed (59Mw) are part of the company's Rs 580-crore expansion plan. The company intends to take the total power production from hydel and wind to 300Mw by 2009.

Of the proposed Rs 580-crore investment, close to 70 per cent will be financed through a consortium of banks and financial institutions. Of the Rs 180 crore, the company will contribute Rs 110 crore through internal accruals while the balance Rs 70 crore will be funded by private equity firms.

"We are expecting the PE funds in the next three weeks," said Bhoruka Power MD S Chandrashekar.

He said that the company planned to add another 50Mw of wind power projects during 2009-10.

"If conditions are favourable, we could commence the projects in 2008-09," he added.

The company recently forayed into Sri Lanka, where it has proposed a 18Mw mini-hydel power project (near the tourist destination Kandy) with a local partner. It is also exploring opportunities in Philippines.