As part of its restructuring plan, Empee Distilleries has acquired 89.85 per cent equity shares of its unlisted firm – Empee Power and Infrastructure Private Ltd., on October 30 and the latter has become a subsidiary of the company.
Empee Power and Infrastructure was accorded permission to set up a 2X660 MW super critical coastal thermal power plant in Sirkazhi, Nagapattinam District at an investment of Rs.6,500 crore. “The land and other permissions are in place. But, it is put on hold as the market conditions are not conducive,” said a top company official.
Talking to The Hindu, the group official said that following dismal performance of its subsidiaries for the last few years, the group had embarked on a restructuring plan and deferred fresh investments and expansion plan for next 12 months.
Empee Power Company (India), another unlisted firm, incurred loss mainly on account of low power tariff and increase in interest rates to 14.30 per cent on the loans availed by the company.
Empee Power has power plants with a totaling capacity of 80 MW. The company has a 20 MW cogeneration power plant at Naidupet in Andhra Pradesh attached to sugar plant. Besides, there are three units in Tamil Nadu – 50 MW Independent Power Plant attached to integrated sugar complex at Ambasamudaram , a 10 MW bio-mass based renewable energy power plant at Aranthangi and a windmill in Tiruppur, which is yet to be commissioned. The power generated through these units are sold to Tamil Nadu and Andhra Pradesh state grids.
Last month, Empee Sugars and Chemicals Ltd gave its nod for 100 per cent divest of its shareholding in the subsidiary (Empee Power), but it was also deferred.
