CORRECTED - Indian VRL Logistics to divest wind power operations

Feb 6, 2012 - Indian transportation company VRL Logistics Ltd intends to dispose of its wind power operations in order to focus on core activities, Indian daily Business Standard said, citing a company official.

The company operates a 51-MW wind farm in the Gadag district of India's Karnataka state. Chairman Vijay Sankeshwar told Business Standard that VRL was in advanced negotiations with interested buyers to divest its wind power operations "shortly". He said that delays in utility payments for the produced energy were among the company's key reasons for the disposal.

VRL's wind farm, which is worth around INR 2.3 billion (USD 47m/EUR 36m), has secured clearance to bolster capacity to 100 MW, the report said. At present, the facility is being operated and maintained by Indian wind turbine maker Suzlon Energy Ltd (BOM:532667), the supplier of the 34 installed turbines.

According to Business Standard, VRL's revenues is to hit INR 10.4 billion in the year through March 2012, up 21% in annual terms. The company has also unveiled plans to exit its cement business.

(INR 100 = USD 2.055/EUR 1.573)

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