Green Infra Ltd buys BP Energy's wind power assets

Green Infra Ltd (GIL), an independent power producer (IPP), has announced the acquisition of energy giant BP Energy India Pvt Ltd’s wind power assets in India. This acquisition makes GIL the country’s largest IPP in the renewable energy sector with 124 Mw. The size of the deal was not disclosed by the company.

The country’s largest infrastructure-focused PE fund IDFC Private Equity has committed Rs 360 crore in the deal, which is a combination of debt and equity. Of the amount, Rs 200 crore has been disbursed. Axis Bank will provide working capital to the firm.

“We have a positive investment outlook on the power sector, particularly in renewable, and have committed Rs 360 crore to support Green Infra in consolidating its leadership position,” said Satish Mandhana, managing director, IDFC PE.

BP Energy's two capacities are located in Maharashtra (40 Mw) and Karnataka (60 Mw) and Green Infra has capacity in Tamil Nadu (25 Mw). In the coming three years, the company aims at adding 300 Mw to its capacity and to start work on 300 to 500 Mw of projects. The generation verticals will also include small hydro, biomass, energy efficiency and solar power.

The company in its presentation said only 7.5 per cent of the country’s estimated renewable energy generation potential has been harnessed and they are not looking at offshore options. Also, the cost of generation offshore is more than onshore and the company would wait till the cost comes down.

In addition to Green Infra, IDFC PE’s other cleantech investments include Moser Baer Photo Voltaic, SE Forge, Emergent Venture India and Dashion.