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Vidullanka announces new power plant

11 Oct 2021

  • Utilises May 2021 rights issue money
Vidullanka PLC (VLL) had announced the commencement of commercial operations of its Monaragala Solar Power Plant from 8 October. This solar power plant, established through its subsidiary Orik Corporation (Pvt.) Ltd., shall have an installed capacity of 1 MWp and is expected to generate 1.5 GWh per annum. The Monaragala Solar Power Plant, which consists of 1,870 JA Solar 535 Wp photovoltaic (PV) modules, is the first ground-mounted solar power project developed by the group, estimated to cost $ 0.7 million and is implemented under the Soorya Bala Sangramaya Phase II programme. Moreover, the project has signed a power purchasing agreement (PPA) with the Ceylon Electricity Board (CEB) to sell the generated electricity at a tariff of Rs. 15.9 for a period of 20 years. VLL raised Rs. 253 million in May 2021 from a rights issue, with the objectives including the development of the Monaragala Solar Power Plant. VLL’s subsidiary Orik Corporation holds the right and approvals to develop this 1 MW ground-mounted solar power plant in Monaragala. VLL acquired a 51% equity stake in Orik Corporation in February 2021. According to the share purchase agreement, VLL will further acquire a 10% stake in the company upon achieving the financial close of this project. Moreover, VLL will continue to invest in the equity of Orik Corporation, which would ultimately increase the ownership of VLL to 87%, whilst the balance 13% equity stake shall be held by the promoters. VLL has further plans for the establishment of the Emerald Rooftop Solar Power Plant I, II, and III under its subsidiary Vidul Engineering Ltd. at an estimated cost $ 0.5 million. The project, which is expected to be completed by the end of the year, contains an installed capacity of 935 kWp and is expected to generate 1.3 GWh. Moreover, VLL hopes to complete the ground-mounted Horana Solar Power Plant by March 2022 at an estimated cost of $ 1.6 million, which shall possess an installed capacity of 2.4 MWp and generate 4.4 GWh per annum. VLL further hopes to commission the ground-mounted Vavunathivu Solar Power Plant by March 2022 as well, which is a joint venture with HiEnergy Services (Pvt.) Ltd. and WindForce PLC. The power plant is estimated to cost $ 7 million and shall have an installed capacity of 10 MWp and is expected to generate 20 GWh. VLL Chairman Osman Kassim, in the 2020/2021 Annual Report, highlighted that the year ended March 2021 was a benchmark year for the company as it realised its highest-ever profit after tax (PAT) of Rs. 595 million from a revenue of Rs. 1.8 billion, which was also the highest on record.


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