Shree Cement today said it will foray into solar power sector and set up plants to generate 50MW in Rajasthan at a cost of INR750 crore.
"We are planning to venture in solar power generation and aiming to have a 50MW capacity initially in Rajasthan," Shree Cement Managing Director H M Bangur told PTI here.
Investment for the proposed venture could be around INR750 crore according to industry thumb-rule, as it needs about INR15 crore outlay to generate 1MW solar power, he said.
"We will use our present cash surplus of INR2000 crore to fund the proposed venture," Bangur said.
The company is in the process of appointing a consultant to prepare a roadmap for the proposed venture in the solar power arena, Bangur said.
Shree Cement has already identified locations for putting up two solar power plants. Shree Cement now has a 12Mta of cement manufacturing capacity and 245MW thermal power generation facility -- all in Rajasthan.
The company has already embarked on enhancing cement manufacturing capacity to 15Mta and power generation to 545MW. These projects are likely to go on stream by April next year, Bangur said.
Laying thrust on power generation from alternative sources, the government has recently approved a new policy on the development of solar energy in the country. It envisages 20,000MW of grid interactive solar power in a three stage plan by the end of the 13th Five Year plan ending 2022.