IPCL on lookout for acquisition opportunity in renewables

KOLKATA: India Power Corporation (IPCL) has floated a wholly owned subsidiary for acquiring or setting up green renewable energy projects.
“We already have 100 mw wind energy project and have been toying with the idea of entering the sector in a big way. The new subsidiary has been floated to grab opportunities in the sector,” Hemant Kanoria, chairman, IPCL.

“India Power Green Energy Utility, a wholly-owned subsidiary of IPCL, was incorporated in December, 2015 with an objective of foraying into and acquiring green assets to build a sizable portfolio of green energy,” he said.

Nevertheless, the company registered a 32% rise in profit after tax to Rs 31.9 crore during the financial 2015-16 on the back of 5.5% rise in gross revenue. The company’s gross revenue during the period was Rs 586 crore against Rs 618 crore registered during the previous period.

Kanoria said: "IPCL will focus on generating and distributing electricity at the lowest cost to its consumers, whether the source is from thermal or renewable. Due to continuous improvement in our network, we have achieved transmission and distribution losses of 2.31%, far lower compared to industry average of around 25%. We are now focusing on growth and backward integration."

A significant milestone achieve is charging of the 220/33 kV substation at J.K. Nagar in the Asansol subdivision in November last year. The JK Nagar substation connects IPCL to the national grid and offers the company flexibility to source power for its customer at best competitive rates.

The substation will also reinforce the distribution capacity of IPCL by receiving power at 220kV level and help to meet the rising demand for power in the Asansol-Durgapur industrial belt.

The performance of India Power's Gaya distribution franchisee, which serves Gaya, Bodh Gaya, Manpur and its adjoining areas under South Bihar Power Distribution Company, has also improved dramatically by 26% in consumer base. India Power Corporation (Bodh Gaya) was set up to meet the needs of more than 150,000 consumers in these areas, with varied requirements including agricultural, commercial and domestic loads. India Power Corporation (Bodhgaya) has reduced T&D losses from 60% in March 2015 to 46% in March 2016 by taking various loss reduction activities.

Work on the 450 MW (3x150 MW) coal-based power plant at Haldia, India Power Corporation (Haldia) Limited is also on in full swing and Phase 1 commissioning is on schedule.