VRL keen to exit wind power biz
VRL Logistics Ltd (VRL), the logistics and transport major is looking at exiting its 42.5 Mw wind power venture at Mundargi in Gadag district of Karnataka, to recoup losses incurred by delayed receivables on sale of wind power to the Hubli Electricity Supply Company (Hescom) as well as its high operational costs.
The Hubli-based company owned by the Sankeshwar family had forayed into the wind energy business in 2007 by setting up the venture for Rs250 crore. The farm has approvals to increase power generation capacity upto 100 Mw whenever required.
Suzlon Energy, which supplied the turbines and other equipment for the farm, has been in charge of operation and maintenance of the plant’s 34 wind mills.
VRL’s investments in wind mills constitute 33% of its total assets. The company has raised term loans of Rs331.29 crore for the wind farm as of September 30, 2009. VRL posted revenues of Rs355.32 crore as of September 30, 2009.