MSPL to up wind energy biz

Earmarks Rs 1,100 cr over 3 years.

Mineral Sales Pvt Ltd (MSPL), the second largest iron ore exporter from the private sector, plans to expand its wind energy business with an investment of Rs 1,100 crore over the next three years.

At present, MSPL, a Baldota Group company, produces 191.6 Mw power from its windmills in Karnataka, Maharashtra and Gujarat. The company intends to increase the installed capacity to 400 Mw by 2010 by commissioning more windmills in the three states.

Most of MSPL's windmills are located in Karnataka (130 Mw). "By the end of the present fiscal, we will add 40 Mw. Next fiscal, the installed capacity will be 320 Mw. We have already shortlisted the sites to install the windmills. We will also install windmills at our mining locations in Karnataka," MSPL Executive Director Shrenik Kumar Baldota told Business Standard.

The company has invested Rs 924 crore on its wind energy business so far. "We intend to raise the Rs 1,100 crore to fund the expansion of the wind energy business through an equity-cum-debt in the ratio of 1:3. We are already in talks with various banks. The funding will be done in phases," Baldota said.

The company has also registered with the United Nations Framework Convention on Climate Change (UNFCCC), one of the largest Clean Development Mechanism (CDM) Projects in the world.

The group has already registered a power generation of 125 Mw in Karnataka with UNFCCC. Carbon Emission Reductions (CERs) amounting to 267666 for 2004-06 have been announced.