NSL Group bags $650-m wind energy project in Chile

The NSL Group, a Rs 3,500-crore diversified business conglomerate based in the city, has acquired developmental rights to set up a 400 MW wind power project in Chile, according to the NSL Group (NSL) Chairman, Mr Mandava Prabhakar Rao.

Mr Prabhakar Rao said the investment outlay for the entire wind farm is expected to be around $650 million. “We have acquired this 400 MW project in Chile during the search for global opportunities in wind power generation.

Chile’s excellent investment climate and economic stability and favourable policies toward renewable power made it a favourable investment destination for the Group and it would act as a springboard to capitalise on the opportunities in Latin America,” Mr Rao told PTI.

The NSL Group’s overseas subsidiary, which acquired development rights to set up the project, is expected to complete the project in three years, Mr Rao said.

Currently, the NSL Group has about 162 MW of installed renewable power capacity in its portfolio, comprising 150 MW of wind power, including 50 MW that is expected to be commissioned later this month and two biomass plants of 6 MW each. In addition, the company has two medium-scale wind projects of 100 MW and 44 MW capacity respectively, besides two small-scale units of 5 MW and 6 MW capacity under development.

Going further, NSL plans to develop seven wind power projects with a cumulative capacity of over 700 MW, which are in various stages of conceptualisation and development, Mr Rao explained. Sources said the funding pattern for Chile would be in the 80:20 debt-equity ratio.

“All options are open at this time, including inviting a strategic partner for the $650 million project. Considering our track record and encouragement for renewable energy all over the world, raising debt will not be a problem,” sources said.

In terms of conventional power, another group company has over 3,000 MW of projects under planning in Tamil Nadu and Orissa.

NSL has said FE Clean Energy Group, a Connecticut-based PE firm, will invest $40 million in NSL Renewable Power Private Ltd (NRPPL), part of the group.

NRPPL will use the funds to meet equity commitments for its various wind, hydro and solar power projects being developed in various parts of the country, NSL said in a statement.