Jindal Steel & Power Ltd Tuesday said it has agreed to sell its wind power project at Satara in Maharashtra to an infrastructure fund managed by IDFC Alternatives. The company did not disclose the value of the transaction. The project has a capacity of 24 megawatts (MW), JSPL said in a stock exchange filing. The company hopes to close the deal with IDFC Alternatives India Infrastructure Fund II in two months. The move comes as part of IDFC Alternatives’ plans to acquire renewable assets under a dedicated platform. On 19 September, Mint reported that the asset management firm will float a platform to hold its renewable energy assets.
The company is targeting acquisitions of 250 MW of operating wind, solar and small hydro capacity by end of 2016 and upwards of 600 MW over the next 18 months, Mint reported. Also Read: IDFC Alternatives to create a platform for renewable energy assets For JSPL, the divestment is part of its ongoing efforts to reduce its debt load. As of 31 March, JSPL’s consolidated debt stood at Rs.46,816.44crore, data from Bloomberg shows. On 4 May, the Naveen Jindal-led JSPL decided to sell a 1,000 MW power plant to elder brother Sajjan Jindal-led JSW Energy Ltd.
The renewable energy space, especially the solar power sector, has been witnessing rising merger and acquisition (M&A) activity with the entry of global clean energy firms and financial investors, including pension funds and sovereign wealth funds. In 2015, there were 14 M&A deals in the renewable energy sector, including hydropower projects, worth $2.27 billion, according to data from Venture Intelligence, a research service focused on private company financials, transactions and valuations. In June this year, Tata Power Co. Ltd said it would buy clean energy firm Welspun Renewables Energy in a $1.38 billion deal, the largest transaction in the country’s renewables sector. In September, Hyderabad-based renewable company Greenko Energy Holdings, acquired SunEdison Inc.’s Indian solar asset portfolio for around $315 million.