India's IL&FS seeks to sell 775-MW wind portfolio - report
Gamesa wind park in India. Source: Gamesa. License: All Rights Reserved.
India's Infrastructure Leasing & Financial Services Ltd (IL&FS) has put up the assets of IL&FS Wind Energy for sale and has entrusted HSBC with finding a buyer, local newspaper Mint said yesterday, quoting undisclosed sources.
The IL&FS wind energy portfolio with a capacity of 775 MW and estimated value of around INR 45 billion (USD 606m/EUR 528m) has been up for sale for about a month already. Last week, the paper says, the government stepped in, dissolving the board of debt-laden IL&FS and appointing a new one, led by Uday Kotak, managing director and chief executive of Kotak Mahindra Bank.
It has been speculated that the process to sell one of India’s largest wind energy platforms was initiated after a planned merger with the wind power operations of Orient Green Power Co Ltd (OGPL) failed, says the newspaper.
IL&FS needs to sell assets to cover for the debt that has been amassed, one source quoted by Mint has said. At the consolidated level, the group has INR 910.9 billion of debt, according to the report.
IL&FS and HSBC bank declined to comment when contacted by the paper.