India Power Corp bets on wind farm, distribution for growth
The Jyoti Kumar Poddar controlled India Power Corporation (IPC) is looking at expansion of wind-power portfolio and distribution franchise for future growth.
The Rs 520 crore entities – controlling a portfolio of thermal power generation as well as distribution portfolio (through its joint venture entity DPSC Ltd) – currently has nearly 35 MW wind capacity to be expanded by 60 MW this month.
While the thermal power capacity expansion plan is now facing uncertainties on coal availability front, IPC is aiming to broad base its wind power portfolio by 100 MW a year for next five years.
“We have identified wind farm and distribution as two immediate growth areas,” the company’s Managing Director, Mr Anup Bhargava, told Business Line. Mr Bhargava, who was previously with GE in Singapore, has assumed office this month.
“With improving technology, capable to utilise the wind-speed in coastal India, load factor in this segment is witnessing a rise. This, coupled with declining costs, the improved revenue model, further boosted by carbon trade and the green power utilisation by telecom towers has made India high growth market in the particular segment,” he said.
Mr Bhargava admits that high financing costs of the day will pose challenges to the expansion plans. However, he draws his strength from the early signs of a reduction in interest rates. “The margins may remain tight in the short term. However, the expansion should help us reap the benefits as soon as the market eases,” he added.
Meanwhile the group, through the Rs 500-crore DPSC – a licensee operator at Dishergarh in Asansol – is bidding for franchise power distribution. “We have come a close second for the recently concluded bidding round for franchise power distributor in Gwalior. We are now weighing options to bid for few more such opportunities,” the company said.
IPC along with Srei Infrastructure controls 57 per cent interest in DPSC