New Delhi, Feb 6 (UNI) LNJ Bhilwara, a vertically integrated textile and clothing group, today said that it has formed a joint venture with Glitnir, the North European bank headquartered in Iceland, to develop geothermal power plants in India and Nepal.
The JV is proposed to be a 60:40 partnership with Glitnir holding 40 per cent stake. Glitnir will also be opening a representative office in India.
The JV will recruit a management team that will focus on developing electricity and power projects in India and Nepal utilising sustainable sources like geothermal energy.
''There are a number of unexplored resources of geothermal energy in India and as we successfully implemented projects in China, we believe the same can be done here,'' Glitnir Bank CEO Larus Welding said.
The diversified LNJ Bhilwara group has over 2,800 megawatts (MW) of energy projects in various stages of development and with this JV they are entering the geothermal power.
''Unlike the wind and solar installations, geothermal energy runs at capacity 24 hours a day, making the actual power yielded from geothermal sources still substantially greater than wind or solar energy,'' LNJ Bhilwara Group chairman Ravi Jhunjhunwala said.
He said the venture would set up two to three plants, each of 40-50 MW capacity in either Kashmir, Ladakh, Chhattisgarh or the Andaman islands at the east coast.
''We are talking of 150-200 million dollars for each site. 30 per cent will be equity, out of which around 40 per cent will be brought in by the Glitnir Bank,'' he added.
Glitnir Bank will also bring in strategic investors to raise capital during different phases of the development of the geothermal plants. The Glitnir team of geothermal specialists will visit various locations in India to identify the best possible geographical area to develop the plants.
The bank will also be filing an application with Reserve Bank soon to open a representative office in India. The bank has similar offices supporting its niche strategy within geothermal energy, seafood and offshore service vessels in China, US and Canada.
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