Logistics and transport major VRL Logistics Ltd (VRL) is looking at exiting its 42.5 MW wind power venture at Mundargi in Gadag district of Karnataka, because of delayed receivables from the sale of power as well as its high operational costs. The Hubli-based company had forayed into the wind energy business in 2007 by setting up the venture for Rs 250 crore.
The company has been looking at selling its wind power venture to recoup losses incurred by delayed receivables on sale of wind power to the Hubli Electricity Supply Company (Hescom) with whom VRL has six power purchase agreements (PPAs) in place.
Current valuations for the wind farm fall in the range of $40 million – 45 million (Rs 188 crore – Rs 212 crore), market sources added.
The company pointed out that the rate per unit of Rs 3.40 paisa for the venture was not a good price compared with the cost of running the project.
Envisioned as a grid-connected renewable energy project, the wind farm was commissioned in 2007 to mark VRL’s foray into wind power.