The $1.2 billion auto component manufacturer and engineering services provider JBM Group plans to diversify into solar energy sector, investing over Rs 1,600 crore in the next three years to set up 300 megawatt of solar power plants.
The company, which plans to be an independent power producer (IPP) will focus on both ground-mounted and solar rooftop projects, and make 30% of the investment through internal accruals and the rest through debt.
"We foresee the renewable energy business unit contributing 15% to our revenues over the next five years. Plans on generating power from wind and biomass are in incubation and we should come up with something on them this year itself," said Nishant Arya, executive director at JBM Group.
The group has businesses in automotive, engineering and design, and education sectors and has 35 manufacturing plants and four engineering and design centres at 18 locations across the globe.
The company, according to Arya, has been scouting over the past few years for sectors that provide good business opportunities. "This is the right opportunity with the government's heavy focus on building Smart Cities, along with a simultaneous international thrust on clean energy," he said.
The company has an order to execute a 20 mw plant in Haryana and is also in discussions with various state distribution companies to set up more solar projects. "We have a dedicated team of 25 for our solar business and we see it going to 100 in next three years," Arya added.
Meanwhile, the company is waiting for clarity on and wider implementation of net-metering policy, which enables buyback of extra electricity generated through solar panels, for foraying aggressively into providing rooftop solar plants.
News Source : Economic times