ADB approves $132.8 million loan to improve Meghalaya’s power distribution network (India)
The Asian Development Bank (ADB) has approved a $132.8 million loan to upgrade the distribution network in Meghalaya. The project will include the construction of 23 substations, renovation and modernisation of 45 substations, and installation and upgradation of 2,214 km of distribution lines and associated facilities in three of the six circles in the state. It will also replace electromechanical meters with smart meters. The loan will be supplemented by a $2 million grant from ADB’s Japan Fund for Poverty Reduction, which will finance mini-grids in three villages and three schools.
NTPC ties up JPY 50 billion loan from JBIC
NTPC Limited has entered into a foreign currency loan agreement with the Japan Bank for International Cooperation (JBIC) for a loan of JPY 50 billion. JBIC will provide 60 per cent of the loan amount and the balance will be extended by various commercial banks including the Sumitomo Mitsui Banking Corporation, Bank of Yokohama, San-In Godo Bank, Joyo Bank and Nanto Bank, under the JBIC guarantee. The facility is being extended under JBIC’s Global action for Reconciling Economic growth and Environmental preservation (GREEN) initiative for projects that ensure global environmental conservation. The loan proceeds will be utilised by NTPC for funding its capex for flue gas desulphurisation and renewable energy projects.
CCEA approves Rs 18.1 billion investment for SJVN Limited’s Luhri project
The Cabinet Committee on Economic Affairs (CCEA) has approved an investment of Rs 18.1 billion for the 210 MW Luhri Stage I hydroelectric project located on the River Sutlej in Shimla and Kullu districts of Himachal Pradesh. The project, being implemented by Satluj Jal Vidyut Nigam Limited (SJVNL) on a build-own-operate-maintain basis, is expected to be commissioned in 62 months and generate 758.2 MUs of electricity annually.
KKR launches platform to acquire renewable energy assets in India
Private equity firm KKR has launched Virescent Infrastructure, a platform to acquire renewable energy assets in India. Virescent aims to expand its portfolio of operational renewable energy assets, facilitated by investments made predominantly through KKR’s infrastructure fund. It currently owns 317 MW of solar assets in Maharashtra and Tamil Nadu. KKR has also entered into definitive agreements to acquire other operating solar projects in three states.
Sterlite Power secures Rs 20.7 billion funding from PFC for VNLTL project
Sterlite Power has achieved financial closure for its Vapi II North Lakhimpur Transmission Limited (VNLTL) project by securing the entire debt funding of Rs 20.7 billion from the Power Finance Corporation (PFC). Financial closure has been achieved within four months of the SPV acquiring the project in June this year. The project is one of the largest interstate transmission systems covering Western Region Strengthening Scheme XIX and North Eastern Region Strengthening Scheme IX. It aims to set up 179 ckt. km of lines for critical system strengthening to decongest the Navi Mumbai transmission corridor by bringing in interstate transmission feed of about 1,000 MW.
RGPPL approaches lenders for a one-time loan settlement
Ratnagiri Gas and Power Private Limited (RGPPL) has approached its lenders for a one-time settlement of its outstanding debt worth Rs 14.61 billion. The lead lender has given its in-principle approval, with a cut-off date of September 1, 2020. Other lenders are still in the process of obtaining the requisite approvals. Meanwhile, the promoters are providing financial assistance to settle the dues and become a debt-free company. RGPPL has delayed servicing its principal loan component due in September, while it has paid the interest due for the month.
ReNew Power sells Karnataka wind farms to Ayana Renewable for Rs 16 billion
ReNew Power has sold wind farms aggregating 300 MW to Ayana Renewable for Rs 16 billion. The two parties signed definitive agreements for the transfer of ReNew’s wind farms in four districts – Raichur, Bijapur, Belgaum and Bellary – in Karnataka. The deal will help ReNew Power reduce its debt and generate cash. ReNew Power had acquired a cluster of wind farms in Karnataka as part of its Rs 100 billion acquisition of Ostro Energy two years ago.
CCI approves acquisition of Orix’s wind business by Greenko Energy
The Competition Commission of India (CCI) has approved Greenko Energy’s acquisition of Japan-based Orix Corporation’s wind generation business in India along with Orix acquiring stake in Greenko Energy Holdings. In September 2020, Orix entered into an agreement to acquire a 20 per cent stake in Greenko for $980 million, valuing it at $5.75 billion.
ElectraNet receives funding approval for Eyre Peninsula Link (Australia)
South Australian transmission company ElectraNet Pty. Limited has received funding approval from the Australian energy regulator for the proposed high voltage Eyre Peninsula Link. The project entails building a 270 km long, double-circuit 132 kV transmission line from Cultana to Port Lincoln via Yadnarie, with the ability to later upgrade the Cultana-Yadnarie section to 275 kV. Construction will commence in March 2021, subject to receiving other required approvals.