Suryachakra Power Corporation Limited is forming an equal equity joint venture with American Bio Sources Inc (ABS)and Environmental Energy Finance Corporation Inc. USA (EEFC) for developing up to 500 MW renewable energy power projects in India, through the Special Purpose Vehicles.
This is the second such partnership struck by Hyderabad-based Suryachakra Power Corp this year. In June it forayed into the wind energy sector by signing a Memorandum of Understanding (MoU) with C Sivasankaran-owned Sterling Group's WinWind Power Energy Private Ltd. This agreement involves setting up a 250 MW wind energy project in Tamil Nadu.
In the latest deal, Suryachakra Global Ventures Ltd., Hong Kong (SGVL), a wholly owned subsidiary of Suryachakra Power Corp has entered into a MoU with ABS and EEFC for implementing renewable energy power projects in the country.
The agreement involves SGVL and ABS/EEFC to set up 50:50 joint venture for developing up to 500 MW renewable energy power projects (biomass/solar/wind etc) in India, through SPVs.
Suryachakra Power Corp scrip was down 0.48 per cent in early morning trade at BSE on Monday in a flat Mumbai market.
ABS has $ 200 million approved funding from EXlM Bank (USA) to set-up renewable energy power plants in India. ABS and EEFC will work with SGVL to secure funding for commissioning the power plants under BOOT model.
ABS/EEFC shall assist and coordinate with SGVL in identifying and sourcing of low interest rate funding, namely EXIM/institutional or any other attractive funds for the projects. SGVL will bring in coordination and documentary support to hasten the implementation and completion of the projects.
Suryachakra has power generation assets across renewable energy (biomass, solar, hydro) besides thermal generation assets. One of its group firms, Lahari Power & Steels Ltd (LPSL), also raised funding from Luxembourg-based fund Climate Change Investment II in 2009.
The previous agreement with WinWind Power Energy Private Ltd involves setting up a 250 MW wind energy project in Tamil Nadu. WinWind Power Energy will bring the 1 W wind energy generators and also provide operation and maintenance of the project for 10 years after completion of the 1 year warranty period.
WinWind Power Energy also plans to take up to a 20 per cent stake in the project coming under Suryachakra Green Power Pvt Ltd. WinWind will also help the firm raise debt from European financial institutions for the project. Serial entrepreneur C Sivasankaran had acquired 40 per cent stake in WinWind in 2006 and later took a controlling position. WinWind is involved in the design, development and assembly of technologically advanced 1 and 3 MW wind turbines. The firm has assembly factories in Finland and India. Besides Siva Group, it also has investments from Abu Dhabi's Masdar and Finnish Industry Investment Ltd.
Suryachakra Forms MoU With Siva's WinWind For 250MW Wind Farm