(SeeNews) - Dec 8, 2011 - Indian sugar refiner Simbhaoli Sugars Ltd (BOM:507446; NSE:SIMBHSUGAR) said this week it had agreed a joint venture with Singapore-based clean energy company Sindicatum Sustainable Resources Group.
Under the deal, the joint venture company, Simbhaoli Power Ltd, will acquire Simbhaoli Sugars' power business, and a subsidiary of Sindicatum will acquire 49% in Simbhaoli Power.
The joint venture will expand the biomass-based electricity generation capacity of Simbhaoli Sugars' plants to 115 MW from the current 60 MW at an expected cost of INR 3.3 billion (USD 63.8m/EUR 47.6m). The expansion is to be funded through a bank debt, with the deal being subject to reaching full financial closure.
The project will involve raising the capacity of the existing power plants at the company's Simbhaoli, Chilwaria and Brijnathpur facilities and connecting the Brijnathpur power plant to the grid.
After the installation of the additional capacity, seen to be completed within a year and a half of financial closure, there will be 80 MW of power surplus for sale to third parties.
(INR 100 = USD 1.934/EUR 1.441)