In Conversation with Mr. Kapil Maheshwari CEO Hinduja Renewables
● Let’s start with the recent developments at your organisation in last one year.
Hinduja Renewables is a flagship company of Hinduja Group founded in 2016 with headquarters in Mumbai, India. In a short span of one-year company has built portfolio of 28MWp and pipeline of 100 MW this year. We have completed one of India’s largest roof top solar plant of 5.7MWp capacity for one of the largest Automobile company. We have recently acquired two solar projects in Rajasthan accounting to 22MWp which are one of the best performing solar plants in India. With a aim to be a leading renewable IPP, we are pursuing opportunities in RESCO rooftop, Private PPA, Open Access projects and selective M&A.
● As a developer, what key challenges do you face today?
The major challenge faced by Indian Developers is getting the financial closures in 3-6 months from signing PPA and getting secured land with time frame. Most Projects have 12-18 months’ timeline to finish the project and start supplying power. The falling tariff has also made the process difficult as lenders are very cautious and secured returns is key to the business. In last 2 months getting a binding quote from Module suppliers is also challenging. Prices for module are going north direction and this could impact IRR as modules are more than 50 percent of the total capital cost of the project. However, Industry has matured enough to take care of the challenges and obviously central government is also making policy changes to promote Solar Developments.
● Which states do you believe lead see maximum solar energy investments this year?
Mostly the southern states such as Telangana, Karnataka and Andhra Pradesh have taken a lead. The favourable regulatory environment and ease of doing business make these states an attractive investment destination for a large volume of upcoming solar projects. However, Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana and Tamilnadu accounts for 80% of the capacity added, Maharashtra, Karnataka and Uttar Pradesh accounts for only 20% along with the remaining states.
● As the assets become older, will aggressive bidding today become a pain point for the industry a few years down the line?
Going forward portfolio management (O&M) will be very crucial for the developers and many companies have already started efforts in that direction. The Industry need policy support from government where States/Centre should not be allowed to change tariff on its own. Till Tariff as defined and agreed in PPA is honoured it is not a pain point for the industry.
● What are the milestones you wish to achieve by the end of this fiscal?
As a Group, we have just started Solar Business. We would be flexible to design our strategy for sustainable profitable growth in future.
● Anything else you would like to add for our readers.
We are looking at Renewable sector as an integrated approach and committed for providing innovative solutions in the area of Solar installations, Electrical Mobility and Energy Storage. Energy and Mobility will drive the future and we are committed for this.