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$200m Indian bioenergy plan pending

South Indian firm, Enviro Engineers Ltd. plans to raise USD 200 million in public investments to fund a new waste to energy project

India’s urban areas generate about 55 million tonnes of municipal solid waste and 38 billion litres of sewage every year

An Indian waste management company plans to raise USD 200 million to finance a power plant fuelled by urban refuse. As Indian waste output per capita grows exponentially, the sector is being eyed as holding great promise.

Ramky Enviro Engineers Ltd., backed by Standard Chartered Plc’s private equity unit, will apply for the initial public offering in February, Executive Director Goutham Reddy told local media.

The Hyderabad-based company is seeking to tap investor demand after a 26 per cent surge in the benchmark stock index last year, the best among the world’s four biggest emerging markets, helped revive IPOs. The waste manager plans 17 billion rupees (USD 308 million) of investment in the next three years to help almost triple sales to 50 billion rupees by March 2018.

“Once I invest the money I have committed, the company will grow at a rapid pace,” Reddy said. “It’s going to be one of the most promising sectors as the government gets stricter about environmental regulations.”

India’s urban areas generate about 55 million tonnes of municipal solid waste and 38 billion litres of sewage every year. Waste output per capita is growing as much as 1.33 per cent annually, according to the website of Chennai-based consultants Energy Alternatives India.