India-based LT Foods plans to invest 1bn rupees ($22.1m) to start a 5MW biomass power generation plant at Hoshiarpur district in Punjab.
The processor and exporter of packaged rice decides to venture into renewable energy “in the wake of increasing demand in the power sector” and to help reduce its carbon footprints, a company statement says.
“By producing our own power we will not only become self-sufficient in meeting our power demands but we will also see this reflect in healthier bottom-lines for LT Foods in the coming years,” says Vijay Kumar Arora, chairman and managing director of LT Foods.
The 1bn rupees will comprise of 70% debt and 30% equity, according to Arora.
“The power will be used for captive and commercial purpose. We expect the plant to be operational by September 2011,” he says.
