The Hiranandani Group, one of the largest privately-held real estate developers, is foraying into power generation in a big way. The group is setting up a 2,500-Mw gas-based power project at a location near Pune.
The Group, which has interests in premium township projects and hospitals through 200 subsidiaries, has floated Hindustan Electricity Generation Company (HEGC) to spearhead the power ambitions, Darshan Hiranandani, director, told Business Standard.
Sources said the Hirandanis would require Rs 11,000-12,000 crore for setting up the power project, to come up at Navlakh Umbre village in the outskirts of Pune.
“We will set up the project with a 75:25 per cent debt to equity ratio and will dilute stake of HEGC to private equity players to raise a part of the equity portion,” said Darshan.
Niranjan Hiranandani, promoter and managing director of Hiranandani Constructions, said the company was still working on details of the project.
The Group has acquired close to 200 acres at Navlakh Umbre and suburbs to set up the plant. A 355 Mw gas turbine will come up in an area of 30 acres and that unit will take off within 30 months. Another six-seven turbines of the same size will come up in the same location within the next 18 months, he said.
Maharashtra is experiencing an average 5,000 Mw of power shortage in summer. The company has also tied up with GAIL for supply of natural gas for firing the project, said Darshan Hiranandani.
The Group, which has mega townships at Powai and Thane in Mumbai and new mega projects coming up in Chennai and Navi Mumbai, would require only 300-400 Mw for captive use.
It will not foray into coal-based power projects, as these are polluting. Nor is it looking at renewables like solar and wind energy, since big projects in these segments would require huge investments, said Niranjan Hiranandani.
Another real estate major, Indiabulls, is developing close to 6,600 Mw of coal-based power plants through a recently listed entity, Indiabulls Power. DLF, India's largest real estate developer, also had interests in power generation, but is now selling off its proposed power venture to reduce debts.
India would add a little over 60,000 Mw of power during the current Five-Year Plan and over 1,00,000 Mw during the next Five-Year Plan.
