Lanco sees big potential in solar energy sector
Lanco Solar has already setup a 5mw solar power generation plant in Gujarat and plans to scale it up to 35mw by the end of the year.
Lanco Solar, a subsidiary of Lanco Inbfratech, sees big potential in the solar energy sector in Gujarat and is making large investments in the state to make the most of the opportunity, a senior company official said on Thursday.
Lanco Solar has already setup a 5mw solar power generation plant in Gujarat and plans to scale it up to 35mw by the end of the year. The company is also eyeing Engineering, Procurement and Construction (EPC) projects in solar power sector in the state.
“Our 5mw solar power plant in Patan is already operational. We are setting up two more solar power plants, totalling 30mw, which are going to be commissioned before 2011 end," V Saibaba, CEO, Lanco Solar, told DNA.
Saibaba said that Lanco has already invested Rs140 crore in solar power generation in the state and would invest an additional Rs400 crore in the coming months to increase solar power generation capacity.
“The projects are being funded by a mix of debt and equity," he said.
Asked about difficulties in raising finance for solar power projects, Saibaba said that there were certain challenges and banks had to be convinced for giving funds for solar power projects.
“There is the fear of the unknown. There are certain difficulties because bankers and financial institutions are not aware of solar power technology and the returns. But, their fears are misplaced," he said.
The company CEO said that they were expecting to generate power worth Rs77 crore per year once the full 35mw capacity is commissioned.
In response to a question about choosing Gujarat for the solar power project, Saibaba said, “We chose Gujarat mainly because of two reasons. Firstly, due to excellent solar radiation, and secondly due to progressive policies of the state government."
Lanco is also eyeing EPC contracts for building of solar power projects in the state. “We are in discussions with developers of 30-40mw of solar power projects for EPC contracts. Talks are at advanced stages for two such projects totalling 15mw," he said.Lanco Solar also plans to setup a plant to manufacture components for solar power plants in Gujarat. Saibaba said that they are considering a couple of locations for the plant.