Internet infrastructure firm Nettlinx Ltd has acquired a 51% stake in Sri Venkateswara Green Power Projects Ltd, which is implementing a 12 MW waste-to-energy project in GHMC limits.
The proposed power plant is being developed in the GHMC south zone, located about 50 kms from the Telangana State Secretariat.
“The investment and acquisition is strategic in nature, considering the company’s decision to diversify into sunrise business segments,” Nettlinx Chairman Manohar Loka Reddy said in a release on Wednesday. The total cost of the power project is around Rs.200 crore and is to be funded with an equity infusion of Rs.60 crore, of which Nettlinx will contribute 51% through its internal accruals. Managing Director of Sri Venkateswara Green Power Projects K.Venkateswara Reddy and his associates will infuse 49% of the equity. The rest of the project funding will come from term loans and working capital borrowings.
Stating that the project is “commercially viable,” the release from Nettlinx said the PPA with Telangana power distribution company specifies a tariff of Rs.7.40 per unit and is on a must buy basis and stipulates a minimum guarantee price as well. The State government had assured 700 tonnes waste per day delivery at the plant site.
The project was accorded significance as it would be an alternative to landfills that pollute land and subterranean water. It is part of the measures to make Hyderabad a pollution free city. The fly ash that will generated from the process is to be used for road pavers.
Mr.Venkateswara Reddy said though both the companies continue to operate as independent business units, the partnership will help build a robust ecosystem to execute the project faster.
