IRCON International recently won a bid to set up a 500-megawatt solar power plant through an e-reverse auction. The company’s CMD, Yogesh Kumar Misra spoke to CNBC-TV18 about the Rs 2400 crore-project, order pipeline, and the outlook going forward.

Speaking about the rationale behind getting into the renewable power generation, Misra said it’s the company’s first venture into solar business and the project has been secured through the e-reverse mechanism from Indian Renewable Energy Development Agency (IREDA) under the CPSU scheme II.

The solar project, which is related to the railways, involves an equity investment of about Rs 500 crore, said Misra, adding that the company also secured another order of Rs 659 crore in Q1 and with this the firm’s total orderbook goes up to Rs 3059 crores for this year.

“We hope to get a significant EPC margin out of the execution of this project and also hope to have an IRR of about 14 to 15 percent going forward. It is a big achievement for us and this will add significantly to both revenues and margins,” said Misra.

He further said, the company would get revenue from power generation sales. IRCON International is likely to tie up PPAs with various consumers. “We are going to get significant revenue in terms of the sale of the electricity,” Misra added.

For the full interview, watch the accompanying video

(Edited by : Kanishka Sarkar)

First Published:Sept 28, 2021 2:24 PM IST