Indowind Energy eyes 25MW expansion project this year

KV Bala, Chairman, Indowind Energy in an interview with CNBC-TV18 elaborated on their recently secured carbon credits approval.

Post this approval the company is hopeful of getting an additional revenue of  nearly Rs 3 crore per annum from the current year onwards. The company is also looking at a 25 megawatt expansion project during the current year.

 Below is the verbatim transcript of his interview with Sonia Shenoy and Ekta Batra of CNBC-TV18. Also watch the accompanying video.

Q: First can you tell us about these carbon credits that you have received? How much will you be earning from carbon credits in FY12?

A: Our Karnataka 18 megawatt project was getting delayed for the last two years because of global recession issues. In May the registration completed, so this could receive then additional revenue of about Rs 3 crore per annum from the current year onwards.

Q: Do you have any carbon credits that you received now and in terms of this particular potential from carbon credits, how much do you expect in FY12, FY13?

A: Out of the 30 megawatt project, 12 megawatt is in Tamil Nadu, which is already registered. The other 18 megawatt project in Karnataka has also been approved and registered with the UNFCCC.

So, we totally would be getting around Rs 3 crore as an additional revenue per year, which was missing in the last year. Apart from that, we are looking at a 25 megawatt expansion project during the current year.

Q: So what would the projects be apart from this 25 megawatt expansion project, what are the others in the current year and how will that help you to increase your capacity in FY12?

A: As of now we have 50 megawatt and overall capacity is about 70 megawatt including the some of the assets for the clients. We are planning to add about 25 to 30 megawatt, during the current year for which we have already got the financial closure from EXIM Bank for a USD 25 million. We are planning to complete this project during the current year.

We just completed a GDR issue for issuing 4 crore shares and we raised about USD 18.2. This money along with the EXIM Bank credit line will be utilized for the expansion project. All this will help us to ramp up the capacity of the power division which in turn will increase our power income and profits.

Q: What kind of an increase can you give us in terms of a revenue growth in FY12? How much of a percentage growth are you expecting in your different segments?

A: As of now Indowind has own assets of about 50 megawatt. This 25 megawatt is a jump of 50% in the capacity. We can expect our power income to go up by atleast 50% form the year 2012-2013 onwards. This is because the current year season has already started.

We may complete the project by December or March 2012. So, we expect that in 2012-2013 there would be atleast 60-70% jump in the income and profits might also go up.