Renewable energy much better than Nuclear disaster

Japan's nuclear reactor blasts fearing melt down

JAPAN met with an unforeseen disaster making its nuclear reactors blast due to earth quakes, this has raised the question about dependency of countries like India on Nuclear power plants for the need of power supply's. Many environmentalist world wide are questioning on the safety of reactors/radiation and its effects on human life's. Even our D-street have concerns and there is a school of thought about India would never be able to complete its nuclear projects in next 15 - 20 years due to many political pressures and hence will not able to satisfy the power demands. 

  I gave a thought on it and here are some of the facts which somewhat we already know & some in my opinion I want to draw your attention to –

1    Maharashtra power demand is 16,000 Mw currently.

2    State owned Mahagenco provides 13,500 Mw, which includes 1,500 Mw purchased from outside.

3    Demand in maharashtra is expected to grow to 23,800 Mw.

4    Mahagenco to provide additional 5,000 Mw.

Now to meet these demands Jaitapur Nuclear Power Project was proposed & similar other nuclear power projects were proposed. As Japan met with a nuclear disaster, Indian govt. have started facing the political pressure to drop these nuclear projects concerning public safety. And the only option to meet the ever growing power demands is Renewable Energy which are cost effective & more environments friendly.

Let’s compare the Capital costs of these projects –

1    Jaitapur Nuclear Power Project is of 9,900 Mw in 938 hectares of total land, which will have 6 reactors of 1,650 Mw capacities each, to be built in collaboration of Nuclear Power Corporation of India Ltd and AREVA a French company. These European Pressurised Reactors (EPR’s) will cost Rs. 20 Cr/Mw or Rs. 8.00 – Rs.9.00 / Unit.

2    Pressurized heavy water reactor with indigenous technology costs Rs. 8 Cr/Mw. Needs about 1 to 4 Square Kilometers of land.

3    Jawaharlal Nehru National Solar Mission to generate 1,000 Mw by 2013 & 20 Gw by 2022 cost to be Rs. 15 Cr/Mw and needs 6.4 Acres of land. (1Gw = 1,000Mw)

4    Indian Wind Energy has installed capacity of 11,807 Mw.  As per Indian Wind Energy Association the potential of electricity generated by wind in India is about 65,000 Mw. Currently wind energy cost Rs. 5 Cr – Rs. 5.6 Cr/Mw and needs about 0.25 Acres of land for 1Mw.

5    Hydro projects cost Rs. 5.4 Cr – Rs. 6 Cr/Mw, Coal Projects cost Rs. 5 Cr/Mw, Bio mass Gas project cost Rs. 5.5 Cr – Rs. 6 Cr/Mw.

So its makes sense to go towards Renewable Energy, India produces 1.67 lakhs Mw against the demand of 3.70 lakhs Mw by 2017 - 18. The per capita power consumption in our country is at 700 units which is much lower than 11,000 in US & 2,800 units in China.

The Power Mix in India (2010) is - Thermal: 65 %; Hydro: 25 %; Nuclear: 3%; Renewable: 7 %.

The Installed capacity as on 30th November 2010 - Coal is at 89,778.38 Mw; Hydro is at 37,367.40 Mw; Gas is at 17,624.85 Mw; Diesel is at 1,199.75 Mw; Nuclear is at 4,560 Mw; Wind & Solar energy is at 16,786.98 Mw.

This shows that even if the nuclear power projects which contributes 4,560 Mw are not allowed due any reasons we still can manage to mop up our power demands. We can utilise this money by giving subsidies & financing to renewable energies. Looking at the current scenario I think that govt. will have no option rather than to promote alternative energy resources and companies like SUZLON ENERGY will gain from it. NUCLEAR PLANT OR NO NUCLEAR PLANT INDIA WILL SHINE AS IT WAS & AS IT IS……..

VISIT HOME PAGE - CLICK HERE

SUZLON's chances of bankruptcy is LESS.....

People are talking about SUZLON ENERGY's bankruptcy & that the company cant service its debt in time ...blah blah...blah...Now they know the difference between a good asset company & bad asset company and still they talk like this shame....

ANYWAYS...here's what I feel about Suzlon, agreed that it has the debts of Rs.9,252 cr & Reserves of Rs.5,892 Cr.(which can take care of losses).

As for the question on loans repayments then here's the answer –

Suzlon took loans for acquisition of Hansen & REpower a german base company. They sold some of the stake in Hansen but they eventually raised their stake in REpower by 14.4 % to current 90.50%.

Share holding Pattern of Click  REPOWER AG -

SUZLON	90.50 %	83,25,845.245 Shs
FREE FLOAT	9.50 %	8,73,983.755 Shs
TOTAL	100 %	91,99,829 Shs

Current Market Price of REpower – 114.5 Euros/Sh (JAN 12 2011)(58.72/1Euro)

The Free float of REpower is 9.5% - 8,73,983.755 Shs = 100.07 m Euros, around Rs.587.62 Cr, According to German laws Suzlon has to buy the entire 9.5 % of REpower in order to integrate REpower’s assets into itself.

NOW , REpower has Total Asset of 1,032.62 m Euros; Shareholders Fund – 475.97 m Euros, EPS – 6.34 Euro/Sh; Dividend paid 1.54 Euro/sh; Total debt of 556.6 m Euros; Debt/Eq – 0.40. NP – 57.93 m Euros.

So, my friend SUZLON adds Rs.2794.89 Cr to its books by just paying Rs.587.62 Cr.Suzlon's debts of Rs.9,252; Reserves of Rs.8686.89 Cr (5,892 + 2794.89 of Repower); D/E ratio will be 1.05. NOT BAD..

The stake buy of REpower’s 9.5% will cost Rs.587.62 cr which is possible as Suzlon has recently completed its rights issue of Rs.1180 cr & has restructured its debts .. Off course this may take long time, say up to a year but fundamentals will improve once this REpower stake is bought..

NOW WHAT YOU THING ABOUT THISSSS

Here are some details of REPOWER AG - CLICK HERE

	Fiscal 2009/10 (m Euros)	Fiscal 2008/09 (m Euros)
SALES	1,303.5772	1,209.0907
EBIT	98.316	76.8988
PBT	83.85	76.5526
NET PROFIT	57.9303	51.9365
Total Asset	1,032.6242	928.3723
Share Holders Equity	475.9717	408.34
Number of Shares (1 Euro)	9199829 shs	9177039 shs
EPS	6.34 Euro	5.75 Euro
Total Dividend	14.44373153	NIL
Opert. Cash flow	119.3
TOTAL DEBT	556.6
Net Working Capital	195.6
Net W.Capital Ratio	14.8 %
Share holders fund	464.498048
Minority Interest	11.473691
Revaluation Reserve	0.776
Retained Earnings	147.707203
Cash	211.719

My previous post on SUZLON CLICK - http://bhavikkshah.blogspot.com/2010/12/suzlon-on-restructuring-merges.html

Suzlon's CFO Sumant Sinha quits to start his own advisory firm: ET reports

As I had reported in my previous post about Suzlon's CFO quiting and reasons not known, (ET confirms the news) but now he gives reason...

Sumant Sinha, has decided to step down from the position witheffect from 1st June 2010, he will pursue his own entrepreneurial interest and sets up his own financial advisory consultancy.

His first Signed - up client is SUZLON ENERGY LTD, to provide high level strategic advice and counsel to the board and managment team.

"I want to persue my own enterpreneurial path for sometime now and financial advisory firm allows me to launch off on my own and deeper dive in many interesting areas", Sinha said.

"I look forward to my continued association with Suzlon and I am delighted that it will be my first client," he added.

Suzlon's chairman, Tulsi Tanti, said that "Sinha's contribution in buliding relationships with important stake holders has been very valueable in getting Suzlon back on track where it is now well-positioned to ride through the current turbulance in the global environment and to rediscover success once again"

Mean while Suzlon's results was out as expected not good, giving Sales down by 28% at Rs.6160 cr, and Net Loss of Rs.188 cr vs Net Profit of Rs.315 cr. Group Revenue at Rs.20620 cr ($4.3 bn) for year FY09-10.

NET DEBTS as on 31st March 2010 down to Rs.10153 crs v/s Rs.12189 cr. Consolidated Net Debt Rs.9764 crs.

Company approves Rights issue of face value Rs.2 to its existing equity shareholders.