Gas utility GAIL would offer for 400 MW solar power capacity being auctioned by SECI (formerly Solar Energy Corporation of baccarat live casino), making it the latest state-run oil and gas firm to bet big on renewable energy for a low-carbon future.
“GAIL will bid for three projects aggregating 400 MW capacity being auctioned by SECI in Rewa, Madhya Pradesh,” company chairman Manoj Jain said on Wednesday.
On proposed outlay for renewables, Jain stated funds “are not a problem for GAIL as we practically have no debt.”
“We had won the bid for Rs 4,800 MW operational wind power projects of ILFS in 2019. But ILFS’ other partner used the first right of refusal.
Otherwise, it would have made a good renewable portfolio,” he added. GAIL has a debt-equity ratio of 1:0.14 and sum debt of Rs 5,990 crore.
GAIL had in March 2019 bounded with state-run power gear maker BHEL for renewables foray. Both firms have left the arrangement open on the choice of equipment for projects.
“BHEL’s solar equipment has a quality advantage. But in some cases, imports could make more sense. It is for BHEL to take the lead in such issues,” he stated.
The tie-up was intended at leveraging the competitive strengths of both firms. GAIL would be the project developer and BHEL would be the project manager and EPC (engineering, procurement contractor) contractor.
GAIL has been a laggard amongst its peers in renewables investment. The firm had in January 2018 commissioned a 5 MW rooftop solar power plant, baccarat live casino’s second-largest, atop two warehouses at Pata petrochemicals complex in UP.
Separately, the firm posted a profit of Rs 1,908 crore for the January-March quarter, down 36% from Rs 3,018 crore a year ago. Sequentially, though, profit was up 28% from the third quarter.
On a year-on-year basis, the firm clocked a net profit of Rs 4,890 crore for 2020-21, roughly 26% down from Rs 6,620 crore in 2019-20. The revenue for the complete financial year stood at Rs 56,737 crore compared to Rs 73,293 crore in the previous fiscal year.