The four concessions (Pauk 50 MW, Heo 90 MW,Tato I 80 MW, Hirit 84 MW), are to be located in the north east state of Arunachal Pradesh on tributaries of the Siom river, in the West Siang district.

As part of the contract, the State of Arunachal Pradesh will receive 12% of total production without cost. It is planned that all four concessions should be operational by 2012 and will run for 40 years from the first day of operation.

At present projected energy prices, annual revenue and EBITDA of the concessions would exceed approximately €91 million and €84 million respectively, Velcan says.

The company intends to finance the four projects through a combination of project and Islamic ‘sukuk’ finance. The company’s strategy is to become a market leader in 50 to 100 MW renewable energy power stations in India and Brazil with a particular focus on the hydroelectric sector.