Greenko Group in talks to buy Gati’s hydro project

NEW DELHI: Greenko Group is exploring the acquisition of Gati Infrastructure Pvt. Ltd’s (GIPL) 110 megawatt (MW) Chuzachen hydro-electric project in east Sikkim, two people aware of the development said.

Hyderabad-based Greenko, backed by Singapore’s sovereign wealth fund GIC Holdings Pte and Abu Dhabi Investment Authority, wants to acquire the privately owned project in India’s north east region as part of its strategy of becoming an integrated energy company.

The firm has 21 operational hydropower projects with a total installed capacity of 379.8 MW.

“Five-six years ago, there were many players in the hydro sector. Now, most of them have pulled out of it. So, there are opportunities both in brownfield and operating assets with Greenko evaluating Gati’s Sikkim hydropower project,” said one of the two people cited above, requesting anonymity.

Hydropower projects come with their own set of problems. Their construction requires specialised technology and design. They also have to deal with geological surprises such as earthquakes, floods and landslides.

“Greenko has been present in the hydropower sector. From there, they got into wind and solar, and now, they are also looking at the transmission and distribution assets. The thought process is to become an integrated utility. They are looking at Gati’s project,” said the second person cited above, who also didn’t want to be named.