Hindustan Power Projects, formerly known as Moser Baer Projects, is one of the few companies that have expanded from green energy towards conventional power projects. The company which is planning to add 1,320 MW of coa-based power and 1,000 MW of solar power in the coming two years, is dabbling with several financing options as the conventional debt and equity mode dry up.<\/p>\n
HPP is in process to file IPO and is also looking at several options such as Infrastructure Investment Trusts (InvITs) and selling operational solar projects to global wealth funds. <\/p>\n
In an interaction with Business Standard, Chairman Ratul Puri said interest rates need to fall further for cost of solar to stabilise. He said both conventional and renewable should now look at new streams of finance.<\/p>\n
\u201cBanks don\u2019t have further room to lend to the sector. Bond market in India has got to develop as the infrastructure sector in India cannot expect to finance the conventional way from public sector banks,\u201d said Puri.<\/p>\n
He said power sector alone would need Rs 35 lakh crore in coming five years while the exposure of banks is close to Rs 11 lakh crore to infrastructure sector as of now.<\/p>\n
\u201cEventually companies would have to directly access public savings and we need to develop an overseas bond market. We looked at various mechanism and InvITs is extremely good tool to put a mature asset in the hands of consumers,\u201d said Puri.<\/p>\n
HPP has sold close to 400 MW of solar assets to global retail funds such as insurance companies and pension funds outside India. \u201cThe model is simple. We develop an asset, finance it through the banks and sell it to global agencies post construction,\u201d said Puri. He did not disclose the names.<\/p>\n
The company is looking to invest close to Rs 15,000 crore in several phases over 3-4 years in both conventional and renewable energy.<\/p>\n
HPP has completed first phase (1,320 MW) of Annupur coal based projects in MP and would now take up second phase (1,320 MW). Puri said, after that the company is hoping to start Chhattisgarh coal power plant of 1,320 MW. <\/p>\n
\u201cWe are waiting for the government to either award incremental linkage or coalmine for this project and we would bid accordingly,\u201d he said.<\/p>\n
The plan, he said is, \u201cto invest close to Rs 10,000 crore in Annupur and apart from that we would look to pump Rs 5,000-6,000 crore in building 1,000 MW of solar in coming 12 to 18 months\u201d.<\/p>\n
HPP\u2019s solar projects that are in the pipeline are the ones won at the tariff of Rs 6-7 per unit and the company is watching the tariffs to stabilise before it participates in bidding again. <\/p>\n
Solar tariffs have fallen sub Rs 4.5 per unit in past year. Puri is of the view that solar tariffs need to get rationalised sooner or later for better returns to long term players.<\/p>\n
\u201cThere is no more room for capital cost to come down and tariffs need to go up a bit for participative players to come in. In the next 6-12 months, we would see much more rational and tariff should stabilise near Rs 5-5.5 per unit,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Hindustan Power Projects, formerly known as Moser Baer Projects, is one of the few companies that have expanded from green energy towards conventional power projects. The company which is planning to add 1,320 MW of coa-based power and 1,000 MW of solar power in the coming two years, is dabbling with several financing options as the conventional debt and equity mode dry up. HPP is in process to file IPO and is also looking at several options such as Infrastructure Investment Trusts (InvITs) and selling operational solar projects to global wealth funds. In an interaction with Business Standard, Chairman Ratul […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-79049","post","type-post","status-publish","format-standard","hentry","category-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/79049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=79049"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/79049\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=79049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=79049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=79049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}