Financial Briefs: India and overseas

CCI approves acquisition of Lanco Amar­ka­n­tak by PFC Projects, REC, SJVN and DVC

The Competition Commission of India (CCI) has approved the acquisition of 100 per cent shareholding of Lanco Amarkantak Power Limited by PFC Pro­jects Limited, REC Limited, SJVN Limi­ted and the Damodar Valley Corpora­tion (DVC). Lanco Amarkantak Power, a special purpose vehicle (SPV) of Lanco In­fratech Limited, is setting up the Amar­kantak thermal power plant at Pathadi village in Chhattisgarh, in two phases. The first phase of the plant comprised two 300 MW units, which achieved commercial operation in April 2010. Phase II, comprising Unit 3 and Unit 4 of 660 MW each, is being developed at an investment of Rs 108.15 billion.

NIIF and JBIC unveils $600 million In­dia-Japan fund

The National Investment and Infrastruc­ture Fund (NIIF) and the Japan Bank for International Cooperation (JBIC) have partnered to unveil a $600 million India-Japan fund to promote collaboration and investment between Jap­an and India in the field of climate and environment. JBIC and the Indian government are the an­chor in­vestors in this fund. The ann­ouncement represents NIIF’s inaugural bilateral fund, with the Government of India contributing 49 per cent of the de­sired corpus, while JBIC contributes the remaining 51 per cent.

AESL acquires Sangod Transmission Service

Adani Energy Solutions Limited (AESL) has completed its acquisition of the entire equity shares of Sangod Transmis­sion Service Limited (STSL) from Rajas­than Rajya Vidyut Prasaran Nigam Limi­ted. STSL’s projects include the implementation of transmission project – RAJ/PPP – 11 – 2x 400/220 kV, 500 MVA grid substation in Sangod, in addition to a 220/132 kV, 160 MVA transformer and the associated transmission line.

Inox Green signs a term sheet to sell entire stake in Nani Virani Wind Energy SPV

Inox Green Energy Services Limited (IGESL) has entered into a term sheet agreement to sell its 100 per cent stake in Nani Virani Wind Energy Limited. Nani Virani Wind Energy is an SPV managing a 50 MW wind farm in Gujarat. The divestment is a part of the company’s strategic initiative to achieve a debt-free status, empowering IGESL to transform into an asset-light annuity operation and maintenance business.

REC signs MoU for two renewable hydrogen and conventional power projects worth Rs 403 billion in Odisha

REC has signed three MoUs totalling Rs 403.58 billion to support and finance various projects in Odisha, over the coming years. The first MoU involves a partnership with Odisha Power Genera­tion Corporation to finance the development of Units 5 and 6, a 660 MW x 2 thermal power project in Jharsuguda, Odi­sha, with an investment of Rs 95.38 billion. The second MoU is a collaboration with Acme Group Limited, providing Rs 160 billion in funding for the green hy­drogen and ammonia facility in Gopal­pur, Odisha. In the third MoU, REC has entered into an agreement with the Avaada Group Limited, pledging Rs 150 billion for an upcoming green hy­drogen and ammonia facility in Gopal­pur, Odisha, promoting green energy initiatives in the state.

Indian Oil approves Rs 16.6 billion investment in NGEL

Indian Oil Corporation Limited’s board has approved a Rs 16.6 billion investment, securing a 50 per cent stake in the joint venture with NTPC Green Energy Limited (NGEL) for the development of renewable power plants. NGEL will set up clean energy-based power projects, including solar PV and wind, in order to fulfil round-the-clock power demands of Indian Oil’s upcoming projects.

Tata Steel to enter into agreement with TPREL to source 379 MW of renewable power

Tata Steel Limited (TSL) has completed ne­gotiations to enter into definitive ag­reements with Tata Power Renewable Energy Limited (TPREL) and TP Vardha­man Surya Limited (TPVSL) for the ac­quisition of a 26 per cent stake in TPVSL, which is currently a fully owned subsidiary of TPREL. As part of this agreement, TSL will also establish a long-term fixed-tariff contract with TPVSL, allowing it to procure 379 MW of captive renewable power.

REC signs MoU with BoI to co-finance power and infrastructure projects worth Rs 300 billion

REC has signed an MoU with Bank of India (BoI) to explore the possibility of funding the power sector and infrastructure and logistics projects under the consortium arrangement. REC and BoI will partner to co-finance loans am­o­un­ting to Rs 300 billion for projects im­plementable in five years, contributing significantly to power generation capacity and energy infrastructure.

EBRD approves loan for Egypt’s NWFE grid reinforcement project

The European Bank for Reconstruction and Development (EBRD) has approved a provision of a sovereign loan of up to Euro 165 million to the Arab Republic of Egypt, for the state-owned Egyptian Elec­tricity Transmission Company, to finan­ce the upgradation and reinforcement of the electricity transmission grid under Eg­y­pt’s Nexus Water, Food & Energy (NWFE) Grid Reinforcement project. The project will require a total financing of Euro 200 million split between an EBRD loan of EUR165 million and European Uni­on (EU) grants (subject to EU appr­o­vals) of Euro 35 million.