Sep 8 (Renewables Now) - Merger talks between Indian companies Orient Green Power Co Ltd (BOM:533263), or OGPL, and IL&FS Wind Energy have reportedly run into deadlock.
The companies started discussions at the start of 2017 over a combination that would have created what was described as India's largest independent wind power generation company with a capacity of 1.2 GW.
The Economic Times, however, reported today, citing people close to the process, that the talks have hit a snag because of a sharp drop in wind power tariffs in Indian auctions held after the start of the negotiations.
In a stock exchange statement, issued in response to the article, OGPL confirmed that the extended exclusivity period for the merger discussions expired on August 31. "Now, both parties are free to negotiate with anyone," the company said. It added it will make an announcement as and when there is a disclosable event.
At the same time, the Economic Times also cited OGPL vice chairman T Shivaraman as saying that merger talks had not been scrapped yet and were taking longer because OGPL was busy separating its biomass business from its wind business, which had now been completed.