IDFC PE banks on green technology

With nearly 20 per cent of its Rs 6,000-crore corpus invested in clean energy, IDFC Private Equity has identified clean technology as a focus area. The seven-year-old company, which manages three funds, has committed over Rs 1,100 crore to nine companies, the latest being Krishna Godavari Gas.

The investment in the gas pipeline venture, where the Andhra Pradesh government and Gujarat State Petroleum Corporation are shareholders, was yet to be finalised, IDFC PE President and CEO Luis Miranda said.

In addition, IDFC PE has committed Rs 360 crore in Green Infra. The 100 per cent IDFC PE-owned company has set up a 24 megawatt wind farm in Tamil Nadu. Miranda said the idea was to build a renewable energy portfolio comprising wind, solar, biomass and small hydel projects. Miranda said in case of Green Infra, the company could explore the possibility of partners for the special purpose vehicle that would execute projects.

He said the growing interest in clean technology was on account of cost advantages as well as rising concerns over global warming and volatility in oil prices.

In the clean technology space, IDFC PE has invested in companies such as Moser Baer Photo Voltaic, SE Forge, the forging arm of Suzlon, Maharashtra Gas, EVi, which is in the carbon advisory business, Doshion and Central UP Gas. It has exited Gujarat State Petronet, where it had invested around Rs 90 crore.

While the slowdown had affected companies such as Moser Baer Photo Voltaic and Suzlon as orders dried up in Europe owing to the liquidity crunch, Miranda said a lot of business would be generated in India. “Initiatives such as the National Solar Mission will change the dynamics,” he said.

The PE player has not invested since December due to the market conditions and valuations. From its third fund of around Rs 3,000 crore, nearly 40 per cent has been committed so far.