The Company has been operating Wind Power Project of 49 MW (40.25 MW in Maharashtra and 8.75 MW in Gujarat). Out of the aggregate capacity of 49 MW, 16.25 MW (13 generators each of 1.25 MW) was commissioned during December 2006 to March 2007 at Dhule in Maharashtra. The remaining 32.75 MW was commissioned at Sangli, Maharashtra (24 MW- 16 generators each of 1.5 MW) during September 2007 to March 2008 and at Kutchh, Gujarat (8.75 MW- 7 generators each of 1.25 MW) in March 2008. The electricity generated from the project is being sold to Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) in Maharashtra and Gujarat Urja Vikas Nigam Limited (GUVNL) in Gujarat. The energy sold and the revenue from sale of electricity during the FY14 were 89.41 Million units and Rs.37.15 crores against 94.74 Million units and Rs.38.19 crores respectively in the year 2012-13. The recent development on wind energy projects, brought about by the NDA government would help the company.
The Company (either directly or through its subsidiary/ JVs) is engaged in the business of Heavy Civil Engineering Construction, Expressways, Cement Manufacturing, Generation of Power, Real Estate and Hospitality. The Business of construction of Hydro-Power Projects is operated from various sites of the Clients. Therefore, the relaxation of FDI investment norms for the construction sector is positive for the company.
The government on last Wednesday eased rules for foreign investment in the construction sector by allowing inflows into projects spread over a smaller area. The move may result in overseas players participating in the development of malls and office spaces in central Delhi and South Mumbai.
As an added sweetener for foreign investors, the Union cabinet also decided to ease the rules for them to exit the project and repatriate profits. For the benefit of consumers there is a clause that will make it mandatory for Indian companies with foreign funding to only sell "developed plots", which means tracts that have trunk infrastructure including roads, water supply, street lighting, drainage and sewerage.
While the government allows 100% FDI in construction, the rules related to minimum area requirement and exit of investors were hampering overseas interest, especially when the sentiment in the sector depressed.
Consultants said that the biggest change is the reduction in the construction and development requirements. The minimum floor area requirement for construction and development has been reduced from 50,000 square metres to 20,000 square meters. For "serviced plots", there is no minimum land requirement now, compared to 10 hectares earlier.
These moves will help in inner-city development. The lower area requirement is also expected to result in more interest in smaller towns where the requirement for large top-of-the line office or residential complexes is limited.