Torrent Power expects double-digit returns on the newly acquired assets, Jigish Mehta, CEO, told CNBC-TV18.
Torrent Power expects double-digit returns on the newly acquired assets, Jigish Mehta, chief executive, told CNBC-TV18.
The company has acquired 156 megawatt wind power plants from CESC's Surya Vidyut unit for an enterprise value of Rs 790 million.
โWe would be getting around a double digit rate of return on these assets that would be in the low to mid teens range. Therefore, we believe that with our strong capabilities of having a highly efficient operating plant that we have already been in operation, we will be able to bring more advantages and also our ability to obtain financing at a much better rate would also get more help to make this equation increasingly capable and viable, โMehta said.
Regarding business, he said, โwe have a generation capacity of 4 gigawatts, of which about 20 percent comes from the renewable sector. We have been continuously scanning and trying to make our portfolio more sustainable and greener. We intend to do this both organically and inorganically. "
According to him, the company seeks to add around 3 gigawatts of renewable capacity in the next few years. โWe have been active on both the mergers and acquisitions (M&A) front and the competitive bidding arena. We currently have 1 gigawatt of operating capacity, and this asset adds to our portfolio. We have around 800 megawatts of plants, which are under construction, which will bring our capacity to around 1.8 gigawatts in another two years and, in addition, we have plans to look for an additional capacity of 3 gigawatts of renewable capacity in three or four years. . So this will bring our overall renewable portfolio to 5 gigawatts, โMehta said.
To see the full interview with management, watch the video
(Edited by : Dipika ghosh)
