Recently the Ruia-family run Essar Power Ltd will foray into renewable energy, setting up a 90 MW solar plant in Madhya Pradesh at an investment of Rs 300 crore. The entry into the renewable segment is part of a strategic decision to rebalance the power portfolio. The renewable energy venture comes close on the heels of EGFL investing in hydrogen power in the UK and coal gas in India. The fund has overseen the completion of the deleveraging program of investee companies in the next two quarters.
The proposed power plant is a solar photovoltaic project to be set up in Bhander, in the Datia district of Madhya Pradesh across 105 hectares of land and will be executed in two parts – 33.7 MW and 56.17 MW. Electricity generated from this plant will be evacuated at 132 kV level and is proposed to be connected to the Bhander substation, which is located at approximately 5 km and will be supplied to industrial consumers within Madhya Pradesh. The project is expected to be completed by June 2022. Essar Power has a current operating capacity is around 3,185 MW. EGFL has invested about Rs 32,000 crore in the power portfolio including 12000 crore of equity. It has also invested in the transmission business by constructing a 465 km interstate transmission system, which spans three states. The other two businesses of the fund’s energy portfolio are also making impressive progress both in India and the UK. Essar Oil Exploration and Production Ltd (EOGEPL) is the country’s largest unconventional energy player.