Nettlinx Acquires 51% Stake In Sri Venkateswara Green Power Projects
Nettlinx Ltd, a city-based internet infrastructure company on Wednesday (9 August) has announced acquisition of a controlling 51 per cent stake in Sri Venkateswara Green Power Projects Ltd, a firm involved in developing and implementing a viable and environmentally sustainable 12 MW power plant, a renewable energy project.
According to a statement issued by Nettlinx, the proposed "state-of-the-art" power plant, will convert Greater Hyderabad Municipal Corporation (GHMC) waste into energy, and being set up in the south zone of the city located about 50 kms from the Telangana State Secretariat.
The project will be operational in about 18 months’ time.
Manohar Loka Reddy, Chairman, Nettlinx Ltd said, the investment and acquisition is strategic in nature, considering the company's decision to diversify into sunrise business segments.
"We are confident of successfully executing this prestigious project, not just help us diversify but also brings in synergies to both the entities," he said.
He added that the total power project cost is around Rs 200 crore and would be funded with an equity infusion of 60 crore, out of which Nettlinx Ltd will contribute 51 per cent through its internal accruals.
K Venkateswara Reddy, Managing Director of Sri Venkateswara Green Power Projects and his associates will infuse towards their share of 49 per cent of equity participation while the rest of the project funding will come from term loans and working capital borrowings.
The project is commercially viable as the power purchase agreement with Telangana power distribution company specifies a tariff of Rs 7.40 per unit and is on a must buy basis and also stipulates a minimum guarantee price, the release said.
The state government had given assurance of 700 tonnes waste per day delivery at the plant site.
(PTI)
