Friday, January 17, 2014

Entegra Ltd: Buy
CMP: Rs.3.52
Shree Maheshwar Hydro Power Corp Ltd
Entegra Limited (Entegra) is an integrated renewable energy company. The company carries out the design, development, installation and construction of renewable energy power plants. It generates electricity from energy sources, namely, wind, thermal, solar, and hydro. The company also carries out the generation of bio fuels from numerous bio fuel sources. It provides innovative renewable energy solutions for residential, institutional and industrial complexes. The company's principal projects include Maheshwar Hydro Power Project with a generation capacity of 400 megawatts in the district of West Nimar, Madhya Pradesh.
Key Highlights:
Hydropower Project (SMHPCL) - Spillway (barrage)
The Company is a pioneer in Renewable Energy in India with an integrated approach towards Hydro and solar (thermal & photovoltaic) energy and customised renewable energy solutions.
a) Hydel Projects: The 400 MW Maheshwar Hydro Power Project: The Company’s prestigious clean and green 400 MW hydro-electric Project, the Maheshwar Project is slated to commence commercial operations shortly. With the distribution of awards and minor
pending R&R work in few villages, the three Turbines can commence Revenue 
generation by the first quarter of FY15. The Project has a 35 year power purchase agreement (PPA) with the Government of Madhya Pradesh wherein, the entirepower generated from the project, which would be approximately 1226 million units would be sold to the Madhya Pradesh Electricity Board. The project is being implemented through its subsidiary - Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL). The payment from MPEB is backed by Letter of Credit from State Bank of India, Escrow Account and Guarantee from Madhya Pradesh State Government and the project is to be commissioned in 2013-2014 in a phased manner.
b) Solar Projects / Wind Projects:
The year 2012-2013 has seen the successful implementation and completion of some prestigious Wind and Solar Projects which include the following:
1. A wind-solar hybrid system consisting of 1.8 kWp x 3 wind turbines and 1.2kWp x 3 photo-voltaic systems totalling 9 kWp has been commissioned at the President’s Estate, New Delhi.
2. The Supply and Installation of Solar Water Heaters at Raj Bhawan, Dehradun and Nainital with a total capacity of 3900 LPD.
c) Services:
The Company has also played an instrumental role in the supply and installation of Solar Water Heaters at various locations across NCR for private consumption.Given the accelerated focus on the renewable energy space and its growing importance as being an intrinsic part of the power requirements of the country, Entegra Ltd, continues to focus on exploring various opportunities providing
innovative and modern renewable energy solutions and extending its various services in the Solar-Wind arena for Government, Commercial and Private operations.
Future Plans:
• Entegra Ltd proposes to install a 50 MW Photovoltaic plant in Rajasthan in order to increase the output of renewable energy and capitalise on the potential of solar power generation in the state.
• The Company is in the process of tapping solar water heating systems and roof-top Photovoltaic projects in the MMR and NCR regions in Delhi among both, residential and commercial establishments.
India is the second most highly targeted country on a global basis, after the United States, with outside investors targeting local partners in order to be able to enter the market. The renewable energy sector has massive potential and efforts to tap the country’s vast resources are now gaining momentum. Thanks to the high demand in power that is being backed by a plethora of attractive government incentives, renewable purchase obligations, tax holidays and grid based incentives, the interest in the renewable energy business in the country has reached new heights. Despite 100% foreign direct investment allowed in power projects, The National Action Plan on Climate Change (NAPCC) has set an ambitious goal of a one per cent annual increase in renewable energy generation. The cost of power generation is going up for projects based on fossil fuels and that of renewable energy sources is coming down.
Shree Maheshwar Hydro Power Corp Ltd (SMHPCL):
In 1993, the government awarded the concession for the 400-MW Maheshwar project to the Indian textile company S Kumars. The site in Nimad District 2km upstream from the town of Mandleshwar had been in development since 1978. After years of delay and numerous changes in ownership, the project is now controlled by Shree Maheshwar Hydro Power Corp Ltd, 68.7% owned by Entegra Ltd. Entegra in turn is controlled by MW Corp Pvt Ltd, a company that was formed as part of the reorganization of S Kumnars Group in December 2006.