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Indian Energy Ltd

  • BY: Andrew Hore |
  • POSTED: 08/12/2009 |

Wind farms operator Indian Energy Ltd has secured a pre-construction project at Theni in Tamil Nadu.

This is the first deal since Indian Energy floated on Aim at the beginning of September. The project will have 49.5MW of generating capacity. The first phase should be completed in June 2010 and a second phase equivalent to two-thirds of the capacity should be up and running by the end of 2010. The first phase will be financed by a mixture of debt and equity.

A 20 year Power Purchase Agreement with the Tamil Nadu Electricity Board will be negotiated. The project should be eligible for a new incentive scheme, called the Generation Based Incentive Scheme, which will increase the price received for the electricity.

This is the next step in the plan to build up a portfolio of wind farms in India with 300MW of annual generating capacity by 2013.

There is already one project up and running at Gadag Plains in the state of Karnataka. The project was fully commissioned in February 2009 and has a capacity of 24.8MW.

Indian Energy is loss-making at the moment. Net debt is £1.22m. There is £9.56m of cash in the bank that can be used to finance new projects.

At 80.5p a share, Indian Energy is valued at £20.4m.

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