Surana Industries

Surana Industries Ltd has informed that in the Company it had set up a Wind Mill Division in the year 2005-2006. In this Division, it established eight Wind Mills at a capacity of 1.5 MW each thus the total capacity created amounted to 12MW. The Wind Mills were established in Radhapuram in Tirunelveli District. These wind mills are capable of producing around 3,80,00,000 units per annum. These wind energies are being utilized for captive consumption. By virtue of this it has been estimated that the Company would be saving around Rs 10 crores per annum of Power Bill.

The total cost of this Project amounted to around Rs 81 crores. The Company has taken term loans from the banks to the extent of around Rs 60 crores.

Similarly in the Company's new Raichur Project also are setting up a Thermal Power Plant for 35 MW. The total cost of the Project would be around Rs 120 crores. The energy produced will be utilized for its Raichur Integrated Steel Complex.

The Raichur Integrated Steel Complex is being set up at a total cost of Rs 471 crores. The full financial tie up arrangements have been made. The entire energy produced in the Thermal Power Plant will be utilized at the Steel Complex at Raichur.

In the long run, the Company is planning to set up a separate Subsidiary Company to take over the Power Plant at Raichur as well the Wind Mills at Radhapuram, Tirunelveli Dist and run this Company as a separate entity. The idea for starting the separate Company is to have a large scale expansion in future in the Power Sector as the Country is in need of power. And a separate Company will have all the advantages for future expansion and it will be easier for the new Company to locate financial resources also.

This arrangement will be finalized only after getting the due permission from all the financing Banks and other Institutions and authorities whose permission is needed for such an arrangement.