Telangana To Buy Power Produced From Its Waste
Nettlinx-owned plant will use waste to generate electricity for Telangana.
A private power producer will supply electricity generated from waste collected around Hyderabad to the Telangana government for two decades.
Nettlinx-owned Sri Venkateswara Green Power Projects Ltd. — a 12 megawatt unit – will use 700 tonnes of waste per day to provide electricity to roughly one lakh households, according to a press statement released by the company on August 8.
The Telangana government has guaranteed to buy power at Rs 7.4 per unit for 20 years. That compares with the levelised solar power tariff of Rs 2.62 per unit and wind power tariff of Rs 3.46 in the latest auctions.
“The government realised that landfills were causing a lot of problems. Therefore, they gave us a competitive pricing to make sure energy is generated from it,” said Manohar Loka Reddy, chairman of Nettlinx Ltd.
A Hyderabad-based internet service provider, Nettlinx acquired a 51 percent stake in the Rs 200-crore green energy power plant, which is expected to become operational by 2019.
Nettlinx, listed on the Bombay Stock Exchange, will sell 30 percent assets of its subsidiary Nettlinx Realty Pvt. Ltd., to infuse Rs 30.5 crore over a period of three months. Sri Venkateswara Green Power Projects, promoted by K Venkateswara Reddy, will infuse another Rs 29.5 crore towards their 49 percent equity share in the company. The remaining Rs 140 crore will be taken as a loan from the banks that will be repaid from the revenue generated by the power plant.