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Tuesday, February 2, 2016
ENERGY DEVELOPMENT COMPANY LTD :- ENERGY FOR PORTFOLIO
Today we are looking into Electric Utilities sector stock for medium to long term investments.
ENERGY DEVELOPMENT COMPANY LTD
Energy Development Company Limited (EDCL) was incorporated in the year
1995 to participate in the country's renewable energy development
program for sustainable development. The Company simultaneously
generates clean, green electricity from water and wind in its own power
plants as well as develops energy and infrastructure projects for
other developers. The company is forward-looking and technology-driven
with rich experience and expertise across all disciplines of
engineering, consulting, management and operational services.
The company currently has 19 MW of renewable energy capacity and has
291 MW of hydroelectric projects at various stages of development. The
Company has targets to develop and own around 500 MW of new Hydro
Electric Power Projects at an approximate capital outlay of
Rs.7000-8000 crores in the next 5-7 years.
The Company has set up its own zero-emission Hydro Electric and Wind
Power Projects which contribute to meeting the increasing demand for
clean energy as well as reduce our dependence on fossil-fuels.
is our core business area. The Company owns and operates a 9 MW Harangi Small Hydro-Electric Power Project
in the district of Kodagu in Karnataka. The project has achieved 100 %
availability factor each year since its commissioning in the year
1999. The Company acquired 7 MW Ullunkal Small Hydroelectric Power Project in the district of Pathanamthitta in Kerala which is fully operational now.
The company is augmenting
its Power Generation capacities by a combination of organic growth,
suitable acquisitions and allotments. The Company has targets to
develop and own around 500 MW of new Hydro Electric Power Projects at
an approximate capital outlay of Rs.7000-8000 crores in the next 5-7
Company presently has 291 MW of hydroelectric projects in its
pipeline. 6 MW Harangi Extension Project is in advanced stage of construction and likely to be commissioned soon. In September, 2006 EDCL acquired 15 MW Karikkayam Project
downstream of Ullunkal Hydroelectric Power Project, which is being
implemented through Ayyappa Hydro Power Limited (AHPL), our 100%
subsidiary Special Purpose Vehicle (SPV) company.
EDCL has received allotments for 270 MW of hydroelectric projects in the state of Arunachal Pradesh.
The Company is set to develop five Hydro Electric Projects of various
sizes, aggregating 210 MW in East Kameng District and two projects
aggregating 60 MW in Tawang District on Build, Own, Operate and
Transfer (BOOT) basis.
The Company has two operational wind projects of 1.5 MW each in Hassan and Chitradurg districts of Karnataka.
The Government of India has launched the “50,000 MW Hydro-electric
Initiative” with the objective of increasing the hydro power capacity
in India out of which more than half the capacity has been identified
in the state of Arunachal Pradesh itself.
EDCL has entered into Memorandum of Understandings with the Government
of Arunachal Pradesh to develop five Hydro Electric Projects of various
sizes, aggregating 210 MWs in East Kameng District and two projects
aggregating 60 MW in Tawang District on Build, Own, Operate and Transfer
(BOOT) basis for a lease period of 40 years from the Commercial Date of
The detailed studies of
the projects are going on. It is expected to start construction on
these projects from January, 2010 in a phased manner and to complete
the same by the year 2016.
Promoter holding 61.31% stake in company, in September quarter company posted 8 cr topline and 3.16 cr bottom line (last full year bottom line was 1.38 cr ). New Arunachal projects will company's topline and bottom line in coming years. Stock trading both NSE and BSE @ 43.50 level, high risk taker investors can buy this stock @ current price and hold medium to long term.
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