TVS Energy, a subsidiary of country's fourth largest two wheeler company TVS Motor is planning to set up a 25.5 MW capacity wind farm in the state of Maharashtra. The proposed project is expected to attract an investment to tune of around INR 153 crore to INR 178 crore. It may be noted, the USD 6 billion TVS Group forayed into power sector through TVS Energy last year.

TVS Energy planned to set up a 25.5 MW capacity wind energy project in Maharashtra.

According to industry sources, the capacity cost to set up 1 MW of wind farm is around INR 6 crore to INR 7 crore, at the current market price. Thus, the investment would be around INR 153 crore to INR 178 crore.

The power generated by this project is proposed to be sold to power distribution utility in Maharashtra. Two turbines (3 MW) were commissioned during the year and the remaining 15 turbines (22.5 MW) are expected to be commissioned in 2012-2013, said in the report.

It may be noted, the TVS Group made its footprint into the power sector by floating a TVS Energy, a subsidiary of TVS Motor. The revenue earned by TVS Energy in 2010-11 was INR 16.64 crore and EBITDA was INR 13.34 crore.

However after providing for interest of INR 13.06 crore and depreciation of INR 7.15 crore, the net loss from operations was INR 6.87 crore. TVS Energy expects the grid availability to improve during the current year.

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