GMDC to invest Rs 484 crore in wind power

The State-promoted Gujarat Minerals Development Corporation Ltd (GMDC) plans to invest Rs 484 crore in the next two financial years to generate 81 MW of wind energy at two different places in the State. The company is entrusting the work to global wind energy generation major Suzlon Energy Ltd.

The listed company, as part of its diversification into clean energy projects, already invested Rs 118 crore in 2009-10 for generation of 20 MW of wind energy at Maliya in Rajkot district. The project was commissioned in November 2009. Interestingly, GMDC has also earned income tax benefit of Rs 30 crore this year on the Maliya project.

In 2010-11, GMDC will invest Rs 242 crore for generation of 40.5 MW at a wind farm in Jodia, Jamnagar district, and an equal amount next fiscal (2011-12) for a similar project at Porbandar. The per megawatt cost of project has, during the last two years, come down from Rs 6.70 crore to Rs 5.96 crore.

GMDC will fund these projects through market borrowing (70%) and internal accruals (30%). It will raise around Rs 150 crore in the next two years from internal resources and tie-up with Gujarat State Financial Services Ltd (GSFS) for the loan component.