The Indian renewable energy market witnessed sale of more than 1 gigawatts of solar and wind energy projects by financially troubled project developers.
IL&FS Wind Energy Limited, a subsidiary of financially troubled non-banking financial institution IL&FS, sold operational wind energy assets worth 873 megawatts to existing minority stakeholder Japan’s Orix.
With this acquisition, Orix now holds the entire 100% stake in IL&FS Wind Energy and thus has complete control over an operational capacity of 873 megawatts.
GAIL is believed to have submitted a bid worth Rs 4,800 crore (US$670 million). However, as Orix was already an existing shareholder in the company and had the first right of refusal, which it successfully exercised.
Essel Group, another company struggle to make timely payments to creditors, sold 205 megawatts of operational solar power assets to Adani Green Energy, one of the largest independent renewable energy generators in India.
Adani Green Energy Ltd acquired the same at an enterprise value of ₹1,300 crore. The deal is expected to close by the end September, when Subhash Chandra‘s Essel Group repays about ₹7,000 crore to creditors as agreed earlier this year. This is the second asset sale by Essel, after a recent stake sale in its entertainment business.
The Essel Group is now looking to sell an additional 480 megawatts of solar power capacity.
All the solar projects were won under the National Solar Mission and state government auctions. Promoters of Essel Group has been on an asset selling spree to pare its debt of ₹11,000 crore. Essel Group companies together owe another ₹11,400 crore separately.
Reference- livemint, Economic Times, Clean Technica