Priyadarshini Mills likely to tap mkt to fund its power foray

MUMBAI: Priyadarshini Spinning Mills, engaged in yarn-manufacturing, now plans to diversify into power by setting up small-sized hydro and gas-based plants and could tap the market to raise funds to finance them, a top company official said.

"We plan to diversify into power having identified the sector as one with immense growth potential. We plan to set up a 12 MW hydro project at Dummugudem in Andhra Pradesh at an investment of around Rs 90 crore," Priyadarshini's Managing Director, Harish Cherukuri, told media here.

There is a tremendous shortage of power in the country and going forward, "we scent immense growth opportunities here," Cherukuri said.

The company is also looking at setting up a 64 MW gas-based project in Andhra Pradesh and is seeking a licence for it.

"The investment here will be around Rs 300 crore and we plan to take-in a strategic investor for this project. This will be a joint venture where we will be the primary investor," Cherukuri said.

The company hopes to obtain all approvals for its hydro project in a month and is eyeing financial closure by end-Q2 this fiscal. For the gas-based project, the company is eyeing financial closure by end-this year, he said.