A2Z to Build Biomass Power Plant in India

7 June 2010 (Last Updated June 7th, 2010 18:30)

A2Z Maintenance & Engineering Services said it plans to build a 500MW biomass power plant fuelled by municipal waste that will require an investment of INR30bn (about $640m). A2Z chairman and managing director Amit Mittal told Business Standard the firm plans to fund the expansion b

A2Z Maintenance & Engineering Services said it plans to build a 500MW biomass power plant fuelled by municipal waste that will require an investment of INR30bn (about $640m).

A2Z chairman and managing director Amit Mittal told Business Standard the firm plans to fund the expansion by tapping the capital markets with an initial public offer (IPO) of about INR3.5bn (about $74m) this year.

Private equity investors including Rakesh Jhunjhunwala, Beacon India Investors and India Equity Partners have invested over INR1.3bn (about $27m) in the firm for a 40% stake.

The plant is expected to be built over a two-year period for which financing will come through IPO and internal accruals.