Sri Lankan firm embarks on a Pakistani hydro power project
Sri Lanka’s Eagle Power Pvt Ltd, a subsidiary of the SPA Group of companies, has gained a strong foothold overseas as it embarks on a partnership in the development of hydro power plant in Pakistan.The Sri Lankan company, is setting up a 40 MW hydro power plant near Kashmir tributary in Pakistan in partnership with Steller Rock Co of Pakistan, it was announced last week.
A MoU for this purpose was signed by Chairman and Managing Director of SPA Group and Eagle Power Anurath Abeyratne and Chairman and CEO of Steller Rock Co, M. Tousif Peracha in Colombo in the presence of visiting Pakistani Prime Minister Nawaz Sharif and Prime Minister Ranil Wickremesinghe. Mr. Abeyratne told the Business Times that his company has begun the groundwork of the 40 MW hydro power plant in Pakistan as a joint venture as a major step towards entering into mini hydro power sector in the South Asian region. The total investment for the project will be in the region of US$ 107 million.
He said that his company which started in a small way in 1980s has expanded its business to hydro power projects from scrap iron sales and the apparel industry, with a low budget. In a conversation with the Business Times on the sidelines of the MOU signing ceremony with eight Pakistani companies and their Sri Lankan counterparts at Temple Trees in Colombo, Mr. Abeyratne revealed that he opened his hardware store in Panadura by using the money earned from the sale of a load of scrap iron bought at a price of Rs. 500 from a Japanese officer who was eager to get rid of this material used for constructing the parliamentary complex at Sri Jayawardenapura Kotte in 1984.
Thereafter taking advantage of the garment industry boom in 1980s he ventured into a mini scale apparel factory, which became a flourishing business called the Apparel Spa (Pvt) Ltd, he disclosed. Mr. Abeyratne stepped into the export arena by launching Korean Spa Industrial Co. (Pvt) Ltd, which soon became popular not only in the garment trade but also in tea, rubber and other traditional and non-traditional exports as a packaging company. After sometime, he bought MAS International (Pvt) Ltd, originally a hat factory in Kegalle which was about to be closed down, to connect it with Apparel Spa and make branded fashion wear like GAP, Mother Care etc, he revealed.
A tyre factory in Jaela which was on the verge of bankruptcy was taken over and re-launched as Eu-Retec (Pvt) Ltd by Mr. Abeyratne.
Having begun his business of selling scrap machinery with a small capital of Rs. 500 and expanded it into a group of companies ranging from garments to garment accessories, high value added industrial direct exports to export supportive indirect exports, from telecommunication to international aviation, his company has now ventured into a hydro power project in Pakistan.
He said that this was possible due to his partnership with Gharibwal Cement Ltd, the parent company of Steller Rock Co of Pakistan.
Chairman of ‘Gharibwal Cement’ Tousif Peracha told the Business Times that the Pakistani power sector gives a return almost double than in India. That’s a very good return. There is very good investment, and with guarantee, he added. He revealed that his company will be setting up a cement manufacturing plant in Sri Lanka very soon. Mr. Peracha noted that the 40 MW Hydro will be connected to the national grid and it will provide electricity for the people living in close proximity to the Kashmir tributary.