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Green Infra, Bharat Light Bid for Lanco’s Wind Power Assets

According to reports, IDFC Private Equity-promoted  Green Infra and  Bharat Light and Power, founded by former GE chief executive TS Chopra, are among four bidders interested in Lanco Infratech’s wind power assets, a senior Lanco official told ET.

Lanco Infratech had earlier announced plans to divest interests in wind power assets. It has licences to generate 5,000 mw using wind turbines and has also acquired land largely spread between Karnataka, Andhra Pradesh and Maharashtra. In addition, Lanco has set up a 10-mw wind power generation unit at Tirunelveli in Tamil Nadu and a 3-mw wind power generation unit at Chitradurga in Karnataka. These projects have long-term power purchase agreements with Tamil Nadu and Karnataka, respectively, and supplies power to the state grids.

The Lanco official, who did not want to be named, said: “We have received about four proposals for our wind power licences and we are discussing the final text and agreement with a couple of serious bidders. There are a few open issues that need to be resolved.”

Lanco intends to raise close to 300 crore from sale of these licences and has appointed global auditing and consulting firm Ernst & Young to find a suitable buyer. The funds, the official said, would be redeployed into the firm’s other power businesses.

Both Green Infra and BLP were unavailable for comments.

Although India’s renewable energy industry is fragmented, findings by consulting firm  KPMG in 2011 say that the Indian wind market has experienced rapid growth in recent years. “The Indian wind energy space is ripe for mergers and acquisitions. Some $586 million of project financing flowed into Indian onshore wind farms in the first quarter of 2011, only 37% below the $934 million that was allocated to the sector throughout 2010,” the report says. India’s wind power sector experienced its highest growth in the 2010, installing 21 gw, said a report published by the  Global Wind Energy Council (GWEC). By GWEC’s estimate, it is expected that India will install anywhere between 24.7 gw and 29 gw by the end of 2015.

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