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Mahindra Susten aims to build 5,500 MW projects in five years: CEO
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Deepak Thakur, MD and CEO of Mahindra and Mahindra’s green energy arm talked about the company’s commitment towards the transition to renewable energy (RE).
Mahindra Susten is committed to building about 5,500 megawatts of sustainable projects in the next five years, says the MD and CEO Deepak Thakur of Mahindra and Mahindra’s green energy arm.
On April 15, Mahindra Susten announced its plan to develop a 150 MW hybrid renewable energy (solar + wind) project at a cost of about ₹1,200 crore.
In a conversation with CNBC-TV18, Thakur said the project being set up in Maharashtra, as a group captive project, is only a part of the bigger plan that the Mahindra Susten group has committed to.
Below is the verbatim transcript of the interview.
Q: Mahindra Susten will be developing this project, give us a sense of where is the funding coming from, is it entirely from the Mahindra Group, and what is the 2030 target across Mahindra Group businesses.
A: For the Mahindra Group is concerned, we have made a commitment with respect to sustainability goals and within that the RE transition commitment that we have made is that we would like to move to 100% power by 2030. With regard to this particular project, this project that we are setting up in Maharashtra as a group captive project, actually is part of the bigger plan that the Mahindra Susten group has committed to.
So we have committed to building about 5,500 megawatts of projects in the next five years. And for this, the shareholders, that is the Mahindra Group and Ontario Teachers’ Pension Plan, which has a 39.9% stake within Susten, have committed equity for this particular build up. This 150 MW is, as I mentioned, of this entire 5,500 megawatt plan that we have approved at our end.
Q: Would Mahindra Group like to expand such hybrid capacity to provide renewable energy to other manufacturers, other companies, is there a plan on the cards?
A: So yes, I think even this group captive project that we have set up currently, I think close to about 55-56% of the total capacity is committed by auto and farm sector and other group companies, which are based in Maharashtra which will actually utilise this power. The balance 35-40% of the power is something that we would look at contracting with third-party entities.
Q: Tell us about your key growth drivers for your portfolio in FY25.
A: So if I will just take a step back, so if we look at Susten’s growth, we have already done about 1,540 megawatts of projects, solar projects that we have built as a developer in the last six years. And now, as I mentioned, we have planned to build up about 5,500 megawatt, which is almost 3.5 times of that capacity in the next five years. Of this capacity, we already have about 2,000 megawatts including this 150 megawatt project that we just spoke of, of capacity which has already been won or acquired by my Mahindra Susten and we are in the process of now constructing and building this capacity.
The video of the entire interview will be uploaded shortly. Do check back in some time.
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