IL&FS plans bond issue to refinance ₹6,000cr debt
Any solar module price increase will impact the internal rate of return (IRR) with the power purchase agreements (PPAs) already being inked. Module prices account for 60% of a solar power project’s total cost and are around $0.37 per watt.
The $3-billion Inox Group in March announced the sale of its operating wind power farm assets to Leap Green Energy Pvt Ltd. Also, Russia’s Rosatom State Atomic Energy Corp is exploring an investment in Inox Group’s wind turbine manufacturing business with a 1,600-MW capacity.
While Mytrah Energy (India) Ltd, Green Infra Ltd, and global private equity fund Actis Llp’s platform Ostro Kutch Wind Pvt. Ltd were the others who bid ₹3.46 per kWh to win the wind energy contracts, SBG Cleantech Ltd bid ₹2.45 per kWh to develop 300MW capacity at Bhadla.
“If the deals fructify the acquirer will complete the projects,” said another person aware of the plans requesting anonymity.
Queries emailed to the spokespersons of Acme Group, Inox Group and the ministry of new and renewable energy on Wednesday remained unanswered till press time.
Any deal if concluded will have to meet the tender bid conditions.
“This has not come to our knowledge. Bid guidelines have got explicit timelines which have to be met,” said a person involved in devising and running India’s solar park bid process.
Infrastructure Leasing and Financial Services Ltd (IL&FS) plans to hit the domestic bond market to refinance almost ₹6,000 crore (about $940 million) of debt, said a senior executive.
The debt was taken to finance the 9.2km Chenani-Nashri project in Jammu and Kashmir— India’s longest road tunnel.
Overall, IL&FS plans to refinance debt to the tune of ₹15,000 crore this financial year, said Ramesh C Bawa, managing director and CEO at IL&FS Financial Services Ltd. The refinancing plan envisages tapping alternative sources including green bonds and infrastructure investment trusts (InvITs) and rupee-denominated overseas loans. Green bonds are sold to fund environment-friendly businesses or assets.
Last year, IL&FS refinanced debt worth ₹5,300 crore for its various assets such as roads and wind energy projects.
According to IL&FS’s annual report for 2015-16, the group had consolidated long-term borrowings of ₹54,665.1 crore and interest outgo of ₹5,497.9 crore.
The tunnel on the JammuSrinagar highway connects Chenani in Udhampur district with Nashri in Ramban district, reducing the travel distance from 41km to 10.9km.