Shreyans plans 9-Mw power plant

Ludhiana-based Oswal-family promoted Shreyans Industries Ltd has plans to set up a 9-Mw captive cum cogeneration power plant with a total project cost between Rs 35 crore and Rs 37 crore.

With the setting up of the new facility, the total captive cum cogen power generation would touch 12Mw. The company owns paper manufacturing units in Nawanshaher and Sangrur districts.

Talking to Business Standard, vice-president (finance) of the company, Arun Kapoor, said, "We plan to put up two captive-cum-cogen power generation plants at each facility. At present, each plant has a 1.5-Mw power generation facility. The plant situated in Sangrur district will get an additional capacity of 3.5 Mw and it would likely be operational by October. We will infuse Rs 15 crore in the project."

"In the Nawanshaher plant, we would install an additional 5.5 Mw-captive cum cogen facility with a total project cost of Rs 20-22 crore. The project would be funded through internal accruals and term loans from banks," he added.

This captive cum cogen power generation would take about one and a half year to function.

Against the existing cost of Rs 4.25 per unit for power, cogen power generation for the company will cost Rs 2.50 per unit. Once the two captive cum cogen power generation facilities are operational, the company is estimated to save more than Rs 5 crore per annum in energy cost.

Further, both the plants would be eligible for carbon credit under clean development mechanism (CDM) of the UN. The company has appointed Ernst & Young to calculate the exact number of carbon credit it would be eligible for.

The company is engaged in the production of writing-paper with a capacity of 66,000 tonnes per annum at 2 factories in Punjab. Instead of wood pulp, the company will use agro waste as raw material.