KSK Energy Ventures may raise funds up to Rs 1,200 crore debt to finance wind energy projects across India, according to sources. KSK Energy Ventures currently has about 71 MW wind energy projects under operation, is looking to set up additional 250 MW projects by the next wind season, which would be May 2012. It is believed that KSK is discussing with multiple suppliers, including Chinese suppliers like Dongfang, Shanghai Electric in China and Suzlon Energy in India, for the wind energy machinery.

The cost per MW of wind energy is about Rs 5.5 to 6 crore. So about Rs 1,500 crore would be required for this project on 80% debt and 20% equity basis. The company prefers to raise the debt though Dollar Denominated Debt, a source told PTI.

The KSK group, which is targeting at around 8,000 MW power generation by FY13 is aiming to generate 5-6% of that though renewable energy in India. The Group has incorporated a subsidiary KSK Green Energy Pte Limited in Singapore to make direct investment in new renewable energy opportunities.

The KSK Group with its implementation of more than 900 MW by March 2011 would achieve a critical mass of project execution capabilities in India and hope to leverage the same in the execution of the 3.6 Gigawatt power project in Chhattisgarh. The first 600 MW of the Mahanadi power project is expected to synchronise with the Grid in the first quarter of 2012-13.

KSK Energy has already signed a deal with Dongfang Electric Corporation, chain-based power equipment maker for procuring 250 MW of wind turbines. The value of the deal could be in the range of $450 million, according to industry sources. The company has also entered in to an agreement recently with Shanghai Electric for supply of 125 units of 2 MW wind turbines. The company is now looking at a single supplier who can supply at least 200 MW in this fiscal year FY12.

“There are some problems with Chinese suppliers. They need to get regulatory approvals from Indian Authorities. Whoever gets the approvals first, the Company may go with them. However it is unlikely that any single supplier would fulfill the requirements. So as an alternative Suzlon is also contacted”, sources explained adding identification of land and agreements are all in advanced stage.