GAIL will bid for a solar incursion with a capacity of 400 MW

GAIL will bid for a solar incursion with a capacity of 400 MW

NEW DELHI – Gas Service GAIL will tender for a 400 MW solar power capacity that will be auctioned by SECI (formerly Solar Energy Corporation of India), making it the latest state-owned oil and gas company to bet heavily on renewable energy for a low-emission future carbon.
“GAIL will bid for three projects totaling 400 MW capacity and will be auctioned by SECI in Rewa, Madhya Pradesh,” company president Manoj Jain told TOI on Wednesday.
On the proposed disbursement for renewables, Jain said the funds “are not a problem for GAIL as we have virtually no debt.
“We had won the tender for ILFS’s Rs 4,800 MW operational wind power projects in 2019. But the other ILFS partner used the first right of refusal. Otherwise it would have been a good revolving portfolio, ”he said. GAIL has a debt-to-equity ratio of 1: 0.14 and total debt of Rs 5,990 crore.
GAIL had partnered in March 2019 with state electric gear manufacturer BHEL for the foray into renewable energy. Both companies have left open the agreement on the choice of equipment for projects.
“BHEL’s solar equipment has a quality advantage. But in some cases, imports might make more sense. It is up to BHEL to take the initiative on these issues, ”he said.
The alliance aimed to take advantage of the competitive strengths of both companies. GAIL will be the project developer and BHEL will be the project manager and EPC (engineering, procurement contractor) contractor.
GAIL has lagged behind its peers in investing in renewable energy. In January 2018, the company commissioned a 5 MW rooftop solar power plant, the second largest in India, atop two warehouses at the Pata petrochemical complex in UP.
Separately, the company posted a profit of Rs 1,908 crore for the January-March quarter, 36% less than Rs 3,018 crore a year ago. However, sequentially, earnings were up 28% from the third quarter.
On an annual basis, the company posted a net profit of Rs 4,890 crore for 2020-21, roughly 26% less than Rs 6,620 crore in 2019-20. Revenue for the full fiscal year was Rs 56,737 crore compared to Rs 73,293 crore in the previous financial year.


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