Es brand comm) — D Srtens de e BR Date: 01.07.2017 Page No.: 16 Edition: Chennai Language: English Height : 15 Widths: 17 AD value: 198900 Clip Value: 596700 Orient Green to sell biomass operations to promoter firm Had earlier considered demerging the Dus into a separate, listed entity Rajasthan, since OGPL. has already agreed to sell them post the de-merger applica- tion to the High Court The biomass operations registered a revenue of 278 crore, falling 24% year-on- year due to a shutdown of Some of the plants. The unit JAGANNATHAN. Orient Green Power Com- any Ltd. (OGPL), an inde- pendent renewable energy- based power generation firm, has decided to sell the bulk of its biomass opera- tions to its promoter com- pany, SVL Ltd., or its registered a loss before tax of subsidiaries. 381 crore in 201647 and the ‘This will see the Chennai- unit has about 2193 crore of based OGPL holding mostly outstanding debt. ‘wind assets, It has wind as- sets to the tune of 425 MW, ‘and biomass assets worth 96 Drag effect: The biomass unithas diluted the improvements from the government, had MW. ‘The move to sell bio- made by the wind business, the company said enmeshed the biomass oper- ‘mass operations comes even ations in cashflow issues, ‘as OGPL and ILAFS Wind En- ate listed entity and even ap- value] for shareholders, the said . Shivaraman, vice- ‘ergy are in parleys to merge proached the Madras High board of the company’ has chairman. their wind assets to create a/_ Court for its nod. approved the sale ofthe bio- “The biomass operations ‘company with 1.2 gigawatts “In view of the accumu mass operations, at an inde- have been adrag on the over- (GW) of operating assets. lated losses and the reduced pendent valuation, to the all performance, and have IL&FS Wind has an operating size of the operations, itwas promoter company.” accord- diluted the substantial im- ‘A combination of factors, including lack of support capacity of 75 MW. feltthat demerger of biomass ing toan OGPL statement. _provements achieved by the ‘The biomass asset sale operations into listed entity ‘wind business,” according to move also signals a change in with limited growth poten Kolhapur plant the statement. Ithas contrib- strategy by OGPL. The firm tial would not create op- The sale transaction will not uted to more than 50% of the had earlier toyed with the _timum value for sharehold- include the 20 MW co-gener- losses and the sale will cut idea of demerging the bio- ers. In order to optimise and ation plant at Kolhapur and outstanding debt by about ‘mass business into'a separ- accelerate the unlocking fof the 10 MW biomass unit in €250 crore.