According to reports, Gujarat Venture Finance Ltd (GVFL) has picked up equity stake in SPV (Special Purpose Vehicle) of UK-based SITAC group, formed to execute 50 MW wind farm project of Rs 252 crore in Gujarat, a top executive said.
GVFL along with SITAC group recently signed a MoU with the state government to develop 50 MW of wind farm in Phase-I in Gujarat.
SITAC which operates in power generation sector through it’s subsidiary SITAC RE, has proposed to set up combined 250 MW capacity wind farms in Gujarat over the next two years and has formed a Special Purpose Vehicle for the purpose. The total project cost is pegged at Rs 1,750 crore.
“We picked an equity stake in SPV of SITAC group formed to execute wind farm projects in Gujarat. Of the proposed 250 MW wind farms, they would develop 36 MW grid connected wind farm in Phase-I in next 3-4 months,” H C Pattnaik, Executive Director, GVFL said adding that for the balance 14 MW, other investors could join in.
“GVFL has sanctioned Rs 40 crore for the phase-I project of 36 MW wind farm proposed to come up near Rajkot,” he said.
GVFL, has made the investment through its Golden Gujarat Growth Fund (GGGF)-I, a dedicated fund with a corpus of Rs 1,000 crore, focused on infrastructure building, especially in the renewable energy sector.
GGGF-I, is a state promoted fund, where state government is the main sponsor with a commitment of Rs 200 crore, along with other financial institutions like LIC and banks.