Kalpataru Power to enter generation business

Kalpataru Power Transmission (KPTL) plans to enter the power generation business in a big way.

The company, which has built only small bio-mass based power plants of 7 mega watt (Mw) capacity in Rajasthan till now, is now readying up to set up bigger power plants of 250 Mw-500 Mw capacities.

"The Kalpataru group has come a long way from real estate, to power transmission, to building small bio-fuel based power plants. Now, our next idea would be to set up power plants of capacities ranging between 250 Mw and 500 Mw. Though nothing specific has been decided as of now, we would like to participate in future government projects," informed Mofatraj Munot, chairman, Kalpataru group.

The 7 Mw bio-mass based power plant in Rajasthan was set up at an estimated cost of Rs 30 crore. Another power plant of the same capacity is expected to be commissioned in Rajasthan by March 2006.

The public listed company is part of the Kalpataru group and earns Rs 540 crore as revenue annually. It provides turnkey solutions in the field of extra high voltage (EHV) transmission lines upto 800 kilo volts (Kv) in India and overseas.

KPTL is also looking to enter power distribution projects in the country. The company is actively participating in the rural electrification projects in states like Uttar Pradesh, Bihar, West Bengal, and Jharkhand.

"So far the company has bagged contracts worth Rs 340 crore in its distribution business," said Ajay Munot, executive director, KPTL.

The company designs, fabricates, erects and constructs EHV transmission lines, locally as well as globally. It has a fabrication plant with an annual installed capacity of 54,000 tonne and is increasing it by another 24,000 tonne. KPTL's construction division has completed over 6,500 km of turnkey projects in India.

After a successful rights issue, KPTL's stake in JMC Projects (India) Ltd has gone up to 48.5 per cent. It had acquired 46 per cent stake in the company in February 2005.