Bio-Mass Based Power Investment Project

Opportunity Snapshot

Investment Opportunity

Needed investors for to produce clean, inexpensive energy through the use of biomass (firewood in the current case) as feedstock.
- Cultivate dedicated high density plantations/forests of fast growing trees to serve as feedstock for dedicated power plants.
- Forests cultivated on dry unused lands procured in the open market.

Phase 1: 5-5-7.5 = 500 acres producing biomass in 5 years to enable production of 7.5 MW of energy perpetually.

Current status
- Land procured.
- Cultivation of plantation commenced in Sivagangai district of Tamil Nadu.
- Area available - 500 acres, usable – 450 acres
- First 7.5 MW plant to commence in Q212.
- Established 15 acre modern nursery with complete infrastructure

Future Plans - 3 more power stations

3Q12 7.5 From buy back arrangement
4Q12 7.5 From buy back arrangement
1Q13 7.5 From buy back arrangement

- Replication of the model in other states.

Key Points
- Independently run initiative by professionals from their own sources - totally free from Government financing or resources.
- Availability of resources not a risk as there is enough feedstock available for 3 years.
- Buy back arrangements are also on place for buying feedstock. Till date 350 acres of land signed under buy back. Target to sign 3000 acres by FY12-13.
We expect around Rs 2cr to Rs 2.5cr revenue from sale of saplings from our nursery to farmers for buy back agreements.

Shareholding Pattern
Diversified Holding, with contribution from 48 individuals. 72% of shares holding through promoters, friend and relatives.
Banking Arrangements
Long term loan from Indian Overseas Bank – INR 3 crores

If you are interested investor, please contact us on Merar for more information.

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