Orient green to sell 5-6 biomass units; to refinance debt – moneycontrol. com

Renewable power company, Orient Green is planning to divest its stake in 5-6 non-performing biomass units in order to refinance debt and raise equity for other profitable ventures.

Recently, the company had reduced equity holdings in its subsidiary, Pallavi Power, to 38.87 percent from 51 percent and further plans to divest 50-55 MW of biomass assets out of its total capacity of 106 MW.

Speaking to CNBC-TV18, S Venkatachalam, MD of Orient Green Power said that the current debt is Rs 1700 crore and refinancing will help reduce it by Rs 30 crore annually.

Nigel: We are looking at various details that we are working with, I was just going through your corporate presentation as well. Gas city indiana zip code You have been divesting stake in various entities, could you give us some details, how much did you divest it for and also you have signed a couple of MoUs so have you managed to go ahead and divest that stake, what kind of money have you got from there?

A: Basically we are in the process of divesting some of our entities in the biomass segment and with this divestments we will be able to get some equity which will be able to run the other biomass units. E85 gas stations in iowa Out of a total of about 12 biomass units, about five to six biomass units we are looking at selling those units so as to be able to run the other biomass units which are quite profitable. Gas x chewables reviews The recent one which we did was Pallavi Power which is basically a hydro unit. Gas in michigan There was not much activity; we are not really looking at hydro at this point in time but looking at divesting and consolidating the biomass segment itself.

Reema: Could you tell us of these five to six which you are looking to divest stake in what will be the total valuation, when will you be able to complete this entire divestment of the biomass entities which you are looking to sell?

A: We are looking at, at least five to six units that we have in our portfolio in the next six months. Electricity sources So, we are working out the valuations, etc, we have already signed some MoUs and as we go along we will be able to give you details on the valuations. Electricity transmission efficiency However, there is some amount of good valuation available for some of the biomass units.

Reema: Because these are non-performing biomass entities because that is what you are presentation says that those are the only ones are looking to divest, you will be selling it at a profit, it is not that you will be taking a hit?

A: No, we will not be taking a hit in any of these biomass units. Gas efficient cars 2010 In fact we will be able to at least generate some cash flows so that the other six biomass units are positive. Gas gas Further, we will be able to also with the investments that we have, the interest that we have in wind, we are going to expand wind in a big way in the coming few years.

Apart from all this we are also looking at refinancing with our banks also which will help reducing debts overall and get longer tenures which is something at least the repayment schedules will be reduced by at least half in the next three-four months. Electricity bill cost per unit We are targeting, most of the banks have shown interest in this.

Nigel: Could you give us the revenues that these units that you are looking to divest, what were they generating in the past couple of years, that is point number one and secondly you said that you have done some refinancing so how much will your interest cost come down by?

A: The interest cost will come down by at least 2-3 percent because these were the loans taken between 2007 and 2011. Electricity merit badge requirements Apart from that there is also the 5:25 scheme which is now available with which we can get much longer tenure. Gas definition In fact that will help us a greater deal also.

As far as the biomass is concerned, we have been having a revenue of about Rs 150 crore and the reduction in revenue will not really be much because we have not been able to fund the fuels and run them at more than 50 percent plant load factor (PLF) all these years.

So, now with these divestments there will be no reduction in the turnover as we see it. Electric utility companies in florida In fact it will help us buy fuel at cheaper rates and run the other units profitability because the tariffs are good and the fuel prices are lower in these areas that we are divesting in.

Reema: As per you presentation, the total operating capacity of your biomass assets were 106 megawatts. Pass gas in spanish So, in these five to six biomass units which you are looking to divest, what will be the capacity which will go away? What will you be left with?

A: About 60 megawatts, in fact the largest one, the 20 megawatt one which is a cogeneration unit which is based in Kolhapur, that is the first one on the divestment scheduled and that should be completed at least partly by March about 80 percent divestment by March and remaining by June. Gas x strips directions The others will work out to another 30 megawatts and total about 50-55 megawatts is what we will be divesting from our 106 megawatts portfolio.

Nigel: Can you give us an update in terms of your debt? What is the current debt and also, you indicated that you are likely to see a reduction of around 2-3 percent on interest? So, what will be your interest outgo, should it come down by around Rs 16-20 crore approximately?

A: Much more than that. Gas zeta costa rica Actually our current debt is including the debts which have to be repaid within one year. 9gag nsfw It comes to about Rs 1,700 crore as far as the current debts are concerned. O gosh Apart from that, we have got corporate debts of over Rs 300 crore. Gas 78 And we will be raising another Rs 300 crore for the new wind assets of 57 megawatts that we have undertaken. Mp electricity bill payment paschim kshetra So, the Rs 1,700 crore will give us a 2 percent interest reduction is about Rs 35 crore we will be able to get. La gas prices now And as I said, more importantly, the longer tenure that we will be getting from the old tenure is about 5-6 years. Electricity in india ppt We are looking at 12-15 year tenure. Static electricity definition physics So, that will reduce our repayments by half which is very important for the infrastructure sector in order to make it viable.

A: That is right. Gas in oil mower In fact, the new wind assets, the 43 megawatts are coming up in Andhra Pradesh and 14 megawatts are coming up in Madhya Pradesh for which we already got the equity in from Edelweiss and the promoter group. Electricity cost in california Now, with this, we will be adding another 57 megawatts which we target to finish definitely by June, 2016. Gaz 67 So, for that we have already tied up with the banks for an additional Rs 285 crore and Rs 125 crore from our equity.