Singapore-based Allgreen Energy will launch 10 biomass based renewable energy projects in the country in the next two to three years investing about Rs 500 crore. Each plant will have a production capacity of 6.5 MW and the total output from all the plants would be in the range of 65 MWs. Allgreen Energy India is using a mixture of 70-percent debt and 30 percent equity to finance the biomass plants.
The work on three of the plants proposed in Karnataka, Tamil Nadu and Madhya Pradesh is expected to commence by March end. Each project will involve an investment of Rs 50 crore. The production is expected to start twelve months from the date of achieving financial closure.
Renewable energy plants are fast gaining momentum in India. Last month, Rajasthan government had announced its plans to spend $1.6 billion on renewable energy projects. The state government has signed agreements with 14 companies to set up wind and biomass plants that are expected to be operational by 2012.
In November, 2008, Haryana government had also announced that it planned to invest Rs. 3,777 crore to increase its renewable energy contribution to 10%. Haryana Government also plans to set up 24 biomass plants to contribute 258 MW for an investment of Rs 1,060 crore.