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The Indian arm of Clenergen Corp, a biomass power manufacturer based in the US, has plans for setting up two wood-fired plants, which will have a total capacity of 71-MW in South India.
Clenergen India will be investing about Rs.1,135 crore for developing the plants in Tamil Nadu and Karnataka, Mark Quinn, chief executive Clenergen Corp, told reporters.
"A 16-MW plant will be set up in Tuticorin and a 64-MW plant will come up in Mangalore," Quinn said.
ICICI Securities and Ernst and Young have been endowed with the responsibility for raising Rs.312 crore debt from the domestic market for the project.
The Indian subsidiary has already entered into a 15-year power purchase agreement (PPA) with Power Trading Corp (PTC).
According to Quinn, the company needs around 4,000 acres in Tamil Nadu and 16,000 acres in Karnataka where it would grow trees that offer high biomass to fire its power plants.
"We have already signed up for 800 acres in Tamil Nadu with a religious institution. Discussions are on for another 1,200 acres and arrangements are being made for the acquisition of the balance 2,000 acres in Tirunelvelli district," he added.
