If sources are to be believed, CLP India, a big investor in the country’s power sector, has emerged as the front-runner to buy a part of Mahindra Susten’s solar power portfolio.
Mahindra Susten is the renewable energy arm of the $20 billion Mahindra & Mahindra Group and the estimated enterprise value of the select solar assets on the block is between Rs 2,000-3,000 crore.
CLP India is currently in advanced negotiations with Mahindra Susten for buying select assets of its domestic solar portfolio but a term-sheet hasn’t been signed as yet.
CLP India predominantly has a wind focused portfolio, hence they are keen on this deal to diversify. CDPQ has capital and wants them to expand. Avendus Capital has the sale mandate for the proposed transaction, another source said.
Incorporated in 2010, Mahindra Susten offers turnkey EPC solutions for solar power plant projects in India, in addition to provision of O&M services for these projects. Recently, the company has forayed into the development of solar power projects.
According to its website, with over 1990MWp (mega watt peak) projects under execution, it is one the largest EPC players in India and has executed & commissioned over 1210MWp of projects which include utility scale solar, rooftop solar and telecom tower solutions.
M&M is more of an EPC player and not a developer. Their model is to build portfolios, sell them and churn capital.
Reference- A MoneyControl & Clean-Future Exclusive