Vijay Swel Jan15th


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Vijay Swel Jan15th

  1. 1. All data and comments in the presentations are made based on the research undertaken to date and should be checked before being taken as fact
  2. 2. Location:
  3. 4. Wind Energy-Our achievements <ul><li>WE have obtained No Objection certificate for Vannikonandal(near Devarkulam) where TNPL farm is located.This is a very good wind resource location and we have obtained NOC for 75 MW. </li></ul><ul><li>We are working on bringing our machine 850 kw capacity with gear model with an assured PLF 32% and our cost for this machine is 2 cr 15 lacs.This is 55% below the price or cost of procuring suzlon’s or other machines and their reported PLf is lower than our projected PLF. </li></ul><ul><li>We have obtained NOC for Theni-Rasinghapuram village.This is for a capacity 75 MW as well. </li></ul>
  4. 5. Our Strengths: <ul><li>Best Identification,land selection,acquisition team in the District recognized by Suzlon and other energy Companies. </li></ul><ul><li>One of the earliest players in the alternative energy domain. </li></ul><ul><li>Have rich experience in land bank promotion and helped a big public limited company develop plantation to the extent of 12,000 acres in our area of operation. </li></ul><ul><li>Ready to Start 50 MW in March in order to pursue 150 MW. </li></ul><ul><li>Well connected to overcome bureaucratic red tape </li></ul>
  5. 6. Geographical Advantages of our Wind Farms <ul><li>Plain terrains running up to thousands of acreage with good access to highways. </li></ul><ul><li>Well equipped ports. </li></ul><ul><li>Statewide extended transmission network by state electricity boards with additions of sub stations and grids. </li></ul><ul><li>Growth of power consumption of the state –necessity to improve power production is a must. </li></ul><ul><li>Acceptance of wind energy and recognition by the whole society. </li></ul><ul><li>Technically qualified human resource –easily available for implementation and O & M operations. </li></ul><ul><li>Easy availability of spare parts. </li></ul><ul><li>Land market value compared to other states discussed in this study is lower in Tamilnadu especially wind certified lands despite Tamilnadu being number one producer of wind energy.(95% of total national capacity) </li></ul><ul><li>Possibility of mixed farming in agriculture which is resourceful and subsidized by state government and several agricultural products are available and suggested by the State for dry land cultivation. </li></ul>
  6. 7. Why Tamilnadu has been the destination ultimate to wind Energy promoters. <ul><li>Support given by state government in implementing the projects. </li></ul><ul><li>Political stability of the state </li></ul><ul><li>Availability of vast lands with wind speeds above 6.4meters/second up to 7.5 meters/second </li></ul><ul><li>Very Prompt seasonal winds with uni direction. </li></ul><ul><li>Easy acquisition of clean and clear lands. </li></ul><ul><li>Logistic comfort </li></ul><ul><li>Least affected wind areas from Tsunami </li></ul><ul><li>Chennai being the knowledge capital for wind energy </li></ul><ul><li>Chennai being the human resource capital for wind energy </li></ul><ul><li>Grid availability and periodic extension of grid done by state </li></ul><ul><li>electricity board and single window clearance </li></ul><ul><li>Quick and easy power purchase agreement and regular and prompt payments by state electricity boards. </li></ul>
  7. 8. The Plan <ul><li>Invest in completion of NOC and take the company to next stage of PPA.Requirement 5 crores </li></ul><ul><li>Land bank finalisation and acquisition completion process-Requirement 3 crores </li></ul><ul><li>Machine/turbine fabrication and CWET approval –required capital 4 crores. </li></ul>
  8. 9. Land Purchase <ul><li>All land in defined wind belt </li></ul><ul><li>1400 acres owned </li></ul><ul><li>20,000 acres have options on </li></ul><ul><li>Require money now to take up options </li></ul><ul><li>Features </li></ul><ul><li>Land advances paid when rates were low. </li></ul><ul><li>Assured Carbon credit return-Minimum 2 crores Indian rupees in first financial year that’s March 2010. </li></ul>
  9. 11. Comparative study moderate Good Good No policy No policy conditional Excellent PPA Policy worst moderate exists --------- -------- Exists Nil Grid disturbance Promoters scope Promoters scope Promoters scope Nil Nil Promoters scope Excellent Infrastructure availability Good Good Good No Policy No policy available Excellent Power policy Rajasthan Gujarat Maharasht Kerala Andhra Karnataka TN
  10. 12. Comparative Study (continued) Needs political clout Needs political clout Corrupt ---------- Cumbersome Cumbersome professional Departmental clearances None None None None None None Regular And periodic Up gradation of of infrastructure Maximum Erratic Erratic ------- ------ Excess Within norms Transmission losses Rajasthan Gujarat Mahara Kerala Andhra Karnataka TN
  11. 13. Wind Map Red shows Highest speed
  12. 14. Bio-Diesel <ul><li>Major Growth industry in India </li></ul><ul><li>Government assistance </li></ul><ul><ul><li>Waste ground </li></ul></ul><ul><ul><li>Women workers </li></ul></ul><ul><ul><li>Diesel </li></ul></ul><ul><li>Jatropha Plant suited to conditions </li></ul><ul><ul><li>Not an edible crop </li></ul></ul><ul><ul><li>Drip water irrigation </li></ul></ul><ul><ul><li>Low vegetation </li></ul></ul><ul><ul><li>High oil content and excellent diesel substitute. </li></ul></ul><ul><ul><li>30-35 year life </li></ul></ul><ul><ul><li>Local knowledge </li></ul></ul><ul><ul><li>Disease/ insect crop eating very limited </li></ul></ul><ul><ul><li>Far less pollutant than fossil fuels </li></ul></ul><ul><ul><li>Other useful by products </li></ul></ul><ul><ul><li>New high yielding strains </li></ul></ul>Growth of Jatropha Jatropha Pod
  13. 15. Images
  14. 16. Images
  15. 17. Images
  16. 18. Images
  17. 19. quote
  18. 20. Concept of Bio Diesel
  19. 21. Flow Chart
  20. 22. Process
  21. 23. Farm management
  22. 25. Yield
  23. 26. First Yield
  24. 27. Yield pictures
  25. 28. Description on yield
  26. 30. Cultivation cost of Jatropha Cultivation cost of Jatropha
  27. 31. Economics of Jatropha on Revenue Land
  28. 32. Economics of Jatropha on Rain fed Land
  29. 33. Economics of Jatropha on Irrigated Land
  30. 34. Intercropping –Revenue per Ha
  31. 35. NABARD Cost of Cultivation per Ha
  32. 36. Wind Farm <ul><li>Tamil Nadu a major source of wind energy in India </li></ul><ul><li>Some sites already well established and land prices now high </li></ul><ul><li>Wind conditions vary according to month but only one very low month </li></ul><ul><li>Local knowledge in construction and operation of wind farms </li></ul><ul><li>Good local access – road plus rail </li></ul><ul><li>Excellent contacts with State officials </li></ul><ul><li>Government and State support for such projects </li></ul><ul><li>Excellent customer base to sell to other than State Electricity Board for an increased margin </li></ul><ul><li>Excellent Indian wind turbine manufacturers </li></ul>
  33. 37. Wind Farm <ul><li>One area already purchased next to developed site </li></ul><ul><li>Second site in wind belt but not developed YET. Great deal of activity though from competitors </li></ul><ul><li>250 Megawatt Wind Farm as project </li></ul><ul><li>Built over 1.5 years </li></ul><ul><li>Cash positive in 7 years providing no interest or debt repayment. </li></ul><ul><li>Excellent capital appreciation </li></ul><ul><li>Footprint is 30% of land (just over 5000 acres required) </li></ul><ul><li>Not on migratory route for Birds and Insects </li></ul><ul><li>No social issues </li></ul><ul><li>OWNERSHIP OF LAND CRUCIAL </li></ul>
  34. 38. Wind Farm Financials Allowing for : Land per 1.25 MW turbine Acres 23 Capex per MW $m1.33 OPEX per MW $m0.011 Rev.per KW RS 3.4 Time to build 1 Year
  35. 39. Company Structure <ul><li>Shareholders </li></ul><ul><li>Main Board </li></ul><ul><li>Management Team </li></ul>Syed Ahmed Miranjee P Srinivasan General Manager Operations – Kumar Rajesh Paulsamy as Aide operations. General Manager – Project and Purchasing Financial Manager Vijay Kannan.S S.Angappan Jay Manickam Dr.Sanjay Sinha Thomas from Carbeion
  36. 40. Strategy to raise Capital <ul><li> Force Multiplier </li></ul><ul><li>SWEL has been founded by Land Bank specialists. Therefore the management devised/conceived a plan to generate funds by selling </li></ul><ul><li>Portion of lands (running to few thousands of acres-wind potential lands </li></ul><ul><li>At a much higher value than what it was bought, there are technical nitty gritties such as acquiring possession of lands and keeping the lands on power of attorney with authorization to resell. This can be done by the individuals and almost all the land brokers follow this system.) </li></ul><ul><li>Tirunelveli, unlike northern Tamilnadu is arid ,dry and lands here are classified as Waste lands and prior to the golden days of Suzlon Lands used to be sold at 500 rupees an acre ten years ago) when other parts of Tamilnadu lands were sold almost 20 times that value same time around. </li></ul><ul><li>SWEL has been successful in tapping Grid evacuation allocation almost at no hidden cost, no under arm deal and almost by convincing the decision makers that SWEL is capable of achieving results be it turbine design, </li></ul><ul><li>Micro site setting or wind farm monitoring services. </li></ul><ul><li>SWEL’s founders have been endowed with rich background in erection of windmills –Miranji has done erection of machines way back in 2001 onwards for Enercon. </li></ul><ul><li>SWEL has huge number of supporters and well wishers who are willing to mortgage their land, buildings, collateral and raise equity funds. </li></ul><ul><li>Creating wealth by way of pledging idle assets and huge assets involve good due diligence and solid creditworthiness on the part of asset owner as well as the liaison company-in our case the liaison company is none other than SWEL itself. </li></ul>
  37. 41. Strategy Continues <ul><li>To go through the litmus test, SWEL has to pay upfront margin money and processing fee to raise mortgages and cash against assets belonging to prospective subscribers. SWEL will sign up relationship agreements and ink this on strict terms and conditions the lender of assets will not become the share holder/subscriber until his assets pass the due diligence and SWEL spends 1% processing fee and owner of assets spends 1% and therefore the money, which can be termed as venture fund to raise my equity as well as debt from 5 million USD to 50 Million USD in 90 days is plausible. </li></ul><ul><li>SWEL doesn’t bribe anyone to get things done, fair means will be followed </li></ul><ul><li>SWEL is sure and certain to bring wind towers and that’s twin towers with RFID applications, transmitters embedded... Testing is done and feasibility reports are ready. </li></ul><ul><li>SWEL trusts in Good business skills and power at the Best rate should be sold by way of adopting strategies (IPP and supply of power to SEZ at higher tariff) </li></ul><ul><li>Few companies can offer Guarantee or security against Risk funds and venture Funds.. Surely SWEL has done the homework and we offer </li></ul><ul><li>a) Land to the investor and the land will be bought in the name of the investor/companies and then transferred by mutation by way of special power, long lease. This will hamper CAGR (Capital assets Growth ratio of SWEL) and with a provision to amend this rule in the second Fiscal year we are adopting this as an instrument of Guarantee. </li></ul><ul><li>Certifications: </li></ul><ul><li>1. SWEL is going for twin certifications (ISO to enjoy carbon credits benefits) </li></ul><ul><li>2. To go for IPO (manufacturing operation-company to be listed in 2009) </li></ul><ul><li>Companies interacting with SWEL: </li></ul>