GAIL India is looking to buy 775 megawatts (MWs) of wind energy assets from IL&FS Energy Development Co., a unit of IL&FS, and has approached investment bankers to advise on a possible deal.
This deal will give India’s biggest gas utility an opportunity to add to its existing renewable energy portfolio of 129 megawatts (MWs) and help offset emissions.
For IL&FS, the asset sales are key to revive the beleaguered shadow lender whose payment defaults have sparked fears of a contagion across the financial system in India.
GAIL had ₹3,240 crore ($451 million) of cash, cash equivalents and short-term investments as of 31 March, according to data compiled by Bloomberg. The wind energy assets held by the IL&FS unit are about 2% of the country’s installed capacity in the segment.
IL&FS’s newly formed board said at the end of last month that resolution options could broadly involve significant capital infusion, asset sales and debt restructuring at group, business vertical or asset level.
This story has been published from a wire agency feed