Karma Energy to invest Rs 240cr in Dhule power project

Power poles
Mumbai, Jun 28: Karma Energy, the subsidiary of Weizmann Limited, today (Jun 28) said it plans to invest Rs 240-crore to set up a 60 MW power project at Dhule in Maharashtra.

"The land we have acquired is a forest land. It has cleared stage one. The land will be procured in six months time and we will start our work there," Karma Energy Managing Director G N Kamath told PTI, adding that he expected it to be operational by 2013.

The company has developed and is currently operating about 33 MW wind power projects in Andhra Pradesh, Maharashtra and Tamil Nadu, with further projects aggregating over 620 MW under various stages of implementation in Gujarat, Karnataka and Maharashtra.

The firm also plans to invest Rs 75-100 crore each year to add 25-30 MW in hydel and wind energy generation.

"Right now, we are investing Rs 30-40-crore per annum in our projects, but we will invest Rs 75-100-crore going forward," he said.

Kamath added that the firm's first 3.5 MW hydel power project in Bhatot in Chamba district of Himachal Pradesh will be commissioned in August this year, while the 4 MW project in the same district will be operational in two years.

The detailed project report is completed but the financing and other formalities are yet to be fulfilled for a few projects in the pipeline, he said.

"There are two-three hydel projects in the pipeline for Himachal Pradesh, with 2-3 MW capacity and these projects would be completed in three years," he said. 

Kamath further said the firm was looking at the policies of various state governments, especially Gujarat and Andhra Pradesh, for selling solar power.

"Right now we are just exploring, if some prospects look good, we will bid for them," he said, adding that the firm had bid for the solar roof top panel in Gujarat, but was not selected as the cost was too high.

Weizmann's Managing Director Chetan Mehra said the group is studying the feasibility of setting up renewable energy projects in South Africa.

"The regime in South Africa is quite supportive. We would like to study the environment before we make a commitment," he said.

Weizmann Group, a Rs 3,500-crore diversified conglomerate having interests in money changing and Western Union Money Transfer business, among others, today listed the two demerged entities from its flagship company Weizmann -Weizmann Forex and Karma Energy -- on the bourses.

The objective of the restructuring exercise was to create separate legal entities focusing on primary business segments of the group--forex business, power business and textile processing and exports.

It also wanted to unlock the values of the demerged undertakings by issuing equity shares to the equity shareholders of the applicant company by the two unlisted resultant companies.

The group expects that the proposed segregation will create enhanced value for shareholders and allow a focused strategy in operations, which would be in the best interest of shareholders and all stakeholders.

The demerger will also provide scope for independent collaboration and expansion without committing the existing organisation in its entirety, it said.

During the noon trade on the Bombay Stock Exchange, the scrip of Weizmann Forex was trading at Rs 65.40 after opening at Rs 48. It touched a high of Rs 77.40 and a day's low of Rs 39.

While Karma Energy's scrip was trading at Rs 22.95 after opening at Rs 48.65. Its registered a opening high of Rs 48.65 on the bourse, and recorded a low of Rs 15.15.


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