NEW DELHI: American investor Global Infrastructure Partners (GIP) is in talks to shop for the Indian sun power business of French strength company Engine SA in a deal doubtlessly worth around $500 million, a person aware of the development stated.
GIP is interested in Engie Solar, which has an 1,a hundred megawatt (MW) solar portfolio in India, the individual said at the situation of anonymity. Of this, 740MW is operational. Rothschild and Co. Has been mandated to discover a customer for the property.
Mint had earlier suggested that non-public equity (PE) fund Actis Llp and Edelweiss Infrastructure Yield Plus Fund were in talks to shop for the French company’s Indian solar electricity business.
With the newly-elected Narendra Modi authorities articulating its imaginative and prescient for reliable and uninterrupted electricity supply to households in its 2nd term, in conjunction with a focus on green strength resources, the interest in India’s rising green economy continues unabated. Last week, sovereign wealth price range GIC Holdings Pte Ltd and Abu Dhabi Investment Authority agreed to invest $495 million in Greenko Energy Holdings, in one in all the biggest investment rounds with the aid of an Indian clean strength manufacturer.
In an emailed reaction, Engine India supervisor Malcolm Wrigley declined to touch upon “marketplace speculation.” A GIP spokesperson, in an emailed response, stated: “We don’t touch upon market hypothesis.”
M.K. Sinha, handling partner, and co-head, GIP India, did now not reply to Mint’s queries.
An outside spokesperson for Rothschild stated: “I have been mandated to put up to you that Rothschild & Co. Does not comment on market speculations.”
GIP has been present within the Indian easy electricity area and led a collection of traders to accumulate Equis Energy for $five billion in October 2017. The sale included liabilities of $1.Three billion and the Indian portfolio of the Singapore-based renewable electricity developer, comprising green power platforms Energon and Energon Soleq.
GIP has also installation an office in India, its first in a rising financial system. It additionally acquired the infrastructure funding commercial enterprise of IDFC Alternatives Ltd and plans to elevate an India-focused fund, except investing in buyout opportunities.
The infrastructure-centered price range of IDFC Alternatives—India Infrastructure Fund and India Infrastructure Fund II—which have a total corpus of a little over $1.Eight billion, have now transitioned to GIP. Globally, GIP manages over $51 billion for its investors.
Mint had on 19 March remaining year pronounced about Angie’s plans to promote a stake in its sun electricity portfolio. With €60.6 billion in annual revenue, Engine is the sector’s biggest strength generator outside authorities control, with an installed ability of one hundred fifteen.3 gigawatts (GW). Of this, 22% is from renewable strength resources. Angie plans to set up the capability of 2GW in India using 2019. It also has a 280MW wind power portfolio.
India has a hooked up renewable energy ability of seventy four.79GW, of which sun and wind power account for 25.21GW and 35.14GW, respectively.
India is walking the arena’s largest renewable strength program and plans to acquire 175GW of renewables ability through 2022 as a part of its climate commitments. The government plans to award a massive 100GW of sun and wind contracts by way of March 2020. Given the bold 2022 goal, the government’s strategy is to finish the bidding manner with the aid of March 2020 so that builders have enough time to assemble these tasks.