IDFC Alternatives buys IL&FS’s Madhya Pradesh solar project
IDFC Alternatives, the private equity arm of IDFC Ltd, has bought a 40 megawatt (MW) solar power project in Madhya Pradesh operated by IL&FS Energy, two people aware of the matter said. Vector Green Energy, a company formed by IDFC Alternatives’ India Infrastructure Fund II to house its renewable energy investments, made the acquisition, the people mentioned above said on condition of anonymity. Aditya Aggarwal, partner, IDFC Alternatives, confirmed the transaction.
“Consistent with our stated strategy of aggregating operating renewable assets, we are continuing to target high-quality, cash generating and operating renewable assets, with the aim of expanding to 500-600MW of operating capacity by the end of 2018,” Aggarwal said. The deal size could not be ascertained.
The project, named Malwa Solar Power Generation Ltd, was awarded to IL&FS Energy Development Co. Ltd by Solar Energy Corp. of India as part of the Jawaharlal Nehru National Solar Mission (JNNSM) and was commissioned in 2015. “After having created the core platform, we are now focusing on diversifying our
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portfolio to include some C&I (commercial and industrial) and rooftop exposure in the coming days,” Aggarwal added.
In July last year, IDFC Alternatives acquired seven operating assets in Andhra Pradesh and Telangana from First Solar Power India Pvt. Ltd for an estimated ₹1,920 crore ($300 million). All debt raised for the acquisition was refinanced earlier this year. The seven projects have longterm power purchase agreements with state utilities. Again in October 2016, IDFC Alternatives’ India Infrastructure fund I acquired three solar projects in Punjab and Rajasthan from Punj Lloyd. In September 2016, the PE fund established Vector Green Energy as the operating and holding company for its control investments in the renewable energy.
Currently, Vector Green owns six assets and has agreed to acquire an additional five assets aggregating to 200MW. Vector Green is managed by an in-house professional team. The Vector Green website says it is looking to acquire and develop renewable projects to grow the platform to 1GW and beyond. The PE fund expects to invest an additional $150-200 million of equity capital into the platform and also has additional commitments from investors. IDFC Alternatives manages nine India dedicated funds across three asset classes: Private equity, infrastructure and real estate.