The BM Munjal-led Hero Group has announced its entry into renewable power generation business by unveiling a company 'Hero Future Energies' for executing clean energy projects in which it will pump in over Rs 7,000 crore by 2016-17.
The new company, at present a wholly-owned subsidiary of country's largest two-wheeler maker Hero Group, will operate across various verticals of renewable energy like wind, solar and hydro of which solar and wind will be the focus initially.
"Hero Future Energies, an independent power producer plans to develop over 1 GW or 1,000 MW of renewable energy projects by 2016-17. Every megawatt of wind power requires close to Rs 7 crore and solar about Rs 8 crore per megawatt," Rahul Munjal, Managing Director, Hero Future Energies said at the launch of the new unit.
The company, which commissioned a wind pilot project of 37.5 MW in Rajasthan in October last year, plans to take this capacity to 800 MW by 2016-17.
Hero Future Energies plans to have a solar power generation capacity of 150 MW and 50 MW of small hydro by 2016-17. It plans to invest over Rs 7,000 crore in the next 3-4 years for the same.
Asked whether the company is looking at exploring international markets, Munjal said: "We also hope to grow across border in the wind and solar power business as a multi-locational and multinational group".
During the current financial year the company will develop 100 MW wind power capacity.
"We are looking at small hydro power plants acquisitions to start with before setting up one ourselves but are yet to zero in on any project so far," Munjal added.
He further added that the Hero Group through its Financial services, power and auto ancillary business aims to create more large sized businesses that would create a larger group.