Torrent Power expects double-digit returns from newly acquired assets
Torrent Power expects double-digit returns from the newly acquired assets, Jigish Mehta, executive director, told CNBC-TV18.
Torrent Power expects double-digit returns from the newly acquired assets, Jigish Mehta, executive director, told CNBC-TV18.
The company has acquired 156-megawatt wind power plants from CESC's Surya Vidyut unit for an enterprise value of Rs 790 crore.
“We would be getting around a double-digit rate of return from these assets which would be in the range of low to mid-teens. Therefore, we believe that with our strong capabilities of having a highly efficient operational plant that we have been already running, we will be able to bring in more upside and also our capability to get finance at a much better rate would also get further help to make this equation more and more capable and viable,” Mehta said.
Also Read: Adani, RIL, Tata bet big on green energy
On business, he said, “We have a generation capacity of 4 gigawatts, out of which around 20 percent comes from the renewable sector. We have been continuously scanning and trying to make our portfolio more sustainable and greener. We intend to do this both through organic as well as inorganic route.”
Also Read: Clean energy the future for India; expect gas prices to decline next year, says Petroleum Secy
According to him, the company is seeking to add about 3 gigawatts of renewable capacity over the next few years. “We have been active both on the merger and acquisition (M&A) front as well as in the competitive bidding arena. Currently, we have 1 gigawatt of operational capacity, with this asset adding to our over the portfolio. We have around 800 megawatts of plants, which are under construction, which will bring our capacity to around 1.8 gigawatts in another two years’ time and further, we have plans to look out for additional capacity of 3 gigawatts renewable capacity in three to four years. So this will take our overall renewable portfolio to 5 gigawatts,” said Mehta.
For the entire management interview, watch the video
(Edited by : Dipika Ghosh)
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