Clenergen India, a wholly owned subsidiary of Clenergen Corporation, UK, is planning to set up two biomass based power projects of 80 MW in South India.

The company has earmarked Rs 1,135 crore to set up the proposed plants in Tamil Nadu and Karnataka. Of the total cost, Clenergen intends to raise Rs 750 crore as debt while the remaining Rs 385 crore as equity. The DPR for the proposed project is ready.

Clenergen is planning to set up a 16 MW plant in Tuticorin in Tamil Nadu and a 64 MW plant in Mangalore in Karnataka. The first of the power plants has already started operation in Tuticorin in Tamil Nadu. This apart, it has acquired a 1.5 MW facility that is to be expanded to 10 MW within a year.

It intends to lease 16,000 acre to set up biomass plantations. On an average Clenergen will need about 200 acre yielding 40 tonne of biomass an acre for every MW of generation capacity. Besides, it will need Rs 9 crore a MW including the cost of leasing land to raise biomass plantations. In Tamil Nadu, Clenergen has taken on 49-year lease over 800 acre in Tirunelveli and plans to soon add 1,200 acre.

The company has entered into a 15 year PPA with PTC India. The PPA with PTC covers 71 MW and the rest will be needed to power Clenergen's facilities.