Muthoot Pappachan Group (MPG), one of the pioneers in trader financing in Kerala, with a turnover of Rs 20,000 crores ($4.4 billion), will invest Rs 100 crore to double its wind power capacity to 50 MW in two years.
The company owns wind farms in Tirunelveli and Kanyakumari Districts of Tamil Nadu with a total installed capacity of 25 MW and the total investment so far is Rs 125 crore.
“We are looking at Tamil Nadu and other potential states like Rajastan for the capacity expansion,” Thomas John Muthoot, Chairman & Managing Director, Muthoot Pappachan Group told VCCircle.The anticipated investment of Rs 100 crore for the capacity doubling would be a mix of debt and equity, he said.
“We are currently studying expansion plans to double our total wind power generation capacity by end 2012,” he adds.
Muthoot Pappachan Group has added 4.50 MW of wind power in the current year with an investment of Rs 26 crore, generating a total of 450 lakh units per year under a Power Purchase Agreement (PPP) with the Tamil Nadu Electricity Board.
“The government has rightly recognised the energy security concerns of the nation and more importance is being placed on energy independence,” said Thomas John Muthoot.
The Group is also considering other areas of clean energy generation in consultation with industry experts.
The core activities of MPG are consumer, employed professional and trader finance with over 5,000 employees and over one million customers. Muthoot Fincorp Limited, the flagship company of MPG, is registered with the Reserve Bank of India as a systemically important non-deposit taking non-banking finance company (NBFC) with a paid up capital of Rs 60 crore and a Net Owned Fund of Rs 403 crore as on September 2010.
The Muthoot Pappachan Group also has significant presence in other sectors of business, such as hospitality, infrastructure, automotive and renewable energy.