Veer Energy and Infrastructure Ltd: The wind beneath its wings

The subsidiary of Veer Energy & Infrastructure Ltd (Rs.3.17), Shruti Power Projects was sanctioned a loan of Rs.52.56 crore by the Indian Renewable Energy Development Agency last year (in parts), for setting up a 12 MW wind farm with project size of Rs.75.60 crore at Vinjalpur Village, District Khambhalia in the State of Gujarat. 

According to the sources, the company is expected to complete the project by August-September, 2015. This is expected to generate an additional revenue of Rs.12 Cr per annum by way of power generation.

Also, from the June, 2015 quarter, there could be a slight increase in both the top and bottomlines of the company, as few ongoing projects could get completed in this quarter. 

Veer Energy & Infrastructure will also take the benefits, of generation based incentive (GBI) as per the policy declared by the central government in the last budget. 

Currently, the company is active in providing infrastructure services for Wind Energy & Other infrastructures as well, and also company has set up Engineering unit at Ahmedabad and started production in the current year. In FY16, it is expecting better results.

Meanwhile, according to a report published in The Economic Times on 14 April, 2015: 

Big wind energy companies in India such as Gamesa, Mytrah and Suzlon are all diversifying into solar space this year with plans to invest several hundred million dollars in the next five years in installing thousands of solar megawatts, given the government's (of India's) impetus to the sector. 

The Union Government is looking at increasing new and renewable energy installation in the country to 175 GW, with the wind energy capacity going up to 65 GW.

Moreover, the company is likely to complete a large number of on-going projects by FY16, which means within the next 9-12 months period, the scrip of Veer Energy and Infrastructure Ltd (Rs..17) could give superb returns.