TPG Growth cuts stake in clean energy producer Greenko Group…

 

TPG Growth, an arm of global private equity major TPG, has sold around a quarter of its stake in clean energy producer Greenko Group plc nearly four years after its initial investment.

TPG Growth sold a little over 2 per cent stake over the last six months in London’s AIM-listed Greenko, reducing its holding to 5.96 per cent.

According to VCCircle estimate, the stake has been sold for $6 million to $8.5 million. A large chunk of the stake has been sold earlier this month as Greenko's scrip reached over 170 pence per unit.

In January 2010, TPG Growth led a $116-million round of funding in Greenko Group plc. The PE firm will pick up a little over 10 per cent stake for around $35 million. TPG's remaining stake is worth $26 million, according to Greenko's current trading price.

Shares of Greenko were trading at 178.75 pence, up 2.14 per cent on Monday morning in London.

Greenko Group plc reported a 74.6 per cent increase in operational capacity from 244 MW in March 2013 to 426 MW by end of September 2013.

The company, backed by a slew a private equity funds, reported an 18 per cent increase in revenues to €27.9 million for the six-month period. On a constant currency basis, revenues grew by 32.4 per cent.

Adjusted EBITDA increased 49 per cent to €24.6 million, despite being affected by adverse currency movements and lower generation from biomass assets, said the company. Adjusted profit after tax increased 151 per cent to €10.5 million from €4.2 million during the same period in 2012.

Greenko Group plc raised $150 million or £100 million from GIC

Singapore, one of the world’s largest sovereign wealth funds, last year. Greenko, one of India’s largest independent power producers in the renewable energy space, raised money through its Mauritius arm.

Other investors in Greenko include Aloe Private Equity, Standard Chartered Private Equity, GE Energy Financial Services and Capital Group.

Greenko has a portfolio of wind, run-of-river hydropower, natural gas and biomass assets. The company is now focused on building new utility scale wind farms and hydropower projects across India. Greenko's goal is to reach 1,000 MW of operational capacity in 2015 and approximately 2,000 MW in 2018.

Source

Read More...

Analysis: Indian Power sector sees return of investors...

 

The Piramal Group led by Ajay Piramal is scouting for investment opportunities in the Indian power sector, in a move that is as much an indication of the intentions of a conglomerate with money to invest as it is of growing investor interest in the business.

“The Piramal Group is looking at investment options and is evaluating opportunities. It has the resources and the appetite,” said a Mumbai-based power sector analyst who spoke on condition of anonymity.

A Piramal Group spokesperson, in an emailed response, said: “We evaluate opportunities across sectors including conventional power,” and added: “As a matter of business policy, we do not comment on specific opportunities.”

The power sector analyst cited above said several transactions were in play and cited investments made or interest evinced by foreign entities such as JPMorgan Chase and Co.’s asset management unit, Sembcorp Industries Ltd of Singapore and France’s GDF Suez SA, among others.
JPMorgan Asset Management invested $150 million in the Bhaskar Group’s Diliigent Power Pvt. Ltd in May 2013; Nagarjuna Construction Co. Ltd has been reported to be in talks with Sembcorp to sell a stake in a power plant; and Meenakshi Energy and Infrastructure Holdings Pvt. Ltd has agreed to sell a 74% stake in a 1,000 megawatts (MW) coal-fired power project to GDF Suez.

The debt-laden Jaypee Group is close to selling two of its three operating hydroelectric projects to a consortium led by Abu Dhabi National Energy Co. PJSC, known as TAQA.

The analyst explained that reasonable valuations have played a part in reviving investor interest in the power sector, as has the rupee’s depreciation, which has sweetened such deals for foreign buyers. The rupee has depreciated 11% against the dollar this year, making Indian assets cheaper for foreign buyers to acquire.

To be sure, valuations have become reasonable because many Indian promoters are looking for investors (if not to sell out altogether). Their problems include the domestic economic slowdown, high borrowing costs, delays in land acquisition and environmental clearances, and fuel shortages.
The Piramal Group itself is flush with funds after a 2010 deal in which it sold its pharmaceutical business to US drug maker Abbot Laboratories for Rs.17,000 crore.

Piramal Capital, which has a structured investments business unit, has invested Rs.550 crore in Navayuga Road Projects Pvt. Ltd, the road development arm of Navayuga Engineering Co. Ltd, and another Rs.500 crore in infrastructure company Green Infra Ltd. Piramal Capital picked up about a 10% stake in the Chennai-based vehicle loan company Shriram Transport Finance Co. Ltd for Rs.1,652 crore in May.

Analysts and experts say the evidence on hand does suggest a return of investor interest in the power business.

“There are some transactions that are happening. There are distressed assets; with valuations being depressed, it make sense,” former power secretary Anil Razdan said. “For the sector to fully recover, more financial closures need to be done for which the fuel issues need to be resolved. The projects need to run on full capacity to earn revenue.”

Power plants have been operating below production capacity because of fuel shortages. Things seems to be improving with the utilities tying up fuel supply agreements for 157 units totalling 71,000MW till November.

“Also, with the elections approaching, the demand for power will go up and to that extent there will be more power procurement by the state governments with state resources being deployed for the same,” Razdan added.

Indeed, trading in electricity saw a spike as the five states of Madhya Pradesh, Rajasthan, Chhattisgarh, Delhi and Mizoram, fearful of political backlash, bought additional power to avoid outages (and consequent voter outrage) in the November-December state assembly elections.

“We have to also keep in mind the fact that these asset sales are happening in projects that are operational or will soon start commercial operation. This mitigates the risk of land acquisition, approvals, clearances and project development. This appeals to foreign investors,” the power sector analyst mentioned in the first instance said.

Sambitosh Mohapatra, an executive director at PricewaterhouseCoopers Pvt. Ltd, said: “India is witnessing a revival of interest in investments, especially of international operators and investors from the Middle East, Europe and Japan, especially in the areas of renewables, conventional power generation (with advanced construction stage or operational) and electrical equipment.”

“It’s on the back of a positive outlook on the changing contours of the economy and expectations of improved governance. It also marks a phase of consolidation with the entry of large strategic operators bringing in synergies buying out small local players more interested in the EPC (engineering, procurement and construction) play,” Mohapatra added.

India’s ambitious bailout plan for state government-owned distribution companies announced in September last year is also expected to help improve the finances of state electricity boards and hence their ability to procure power.

“The scheme has been successfully implemented in Tamil Nadu, UP (Uttar Pradesh), Rajasthan and Haryana. FRPs (financial restructuring plans) have also been finalized for the states of Bihar, Jharkhand and Andhra Pradesh. Rationalization of tariffs has already been carried out by 24 SERCs (state electricity regulatory commissions)/JERCs (joint electricity regulatory commissions),” the power ministry said in a statement on Monday.

Source

Read More...

Jaypee set to sell two hydro power units to TAQA, Canadian pension fund...

 

The debt-laden Jaypee Group is close to selling two of its three operating hydroelectric projects to a consortium led by Abu Dhabi National Energy Co. PJSC, known as TAQA, and including a Canadian pension fund for at least $1.5 billion, according to two people close to development.

TAQA will buy a 51% stake in the projects, with a Canadian pension fund purchasing 39% and IDFC Alternatives Ltd, the private equity arm of infrastructure finance company IDFC Ltd, taking the remaining 10%, said the two people, who both spoke on condition of anonymity.

The transaction, which will raise funds for the Jaypee Group to pare more than Rs.50,000 crore of debt, could help accelerate consolidation in India’s beleaguered power sector, burdened by debt, delays in project approvals and fuel shortages. Slowing economic growth has hit power demand from industrial consumers in some parts of the country.

“The documentation is in progress. This will be the first exposure of this large Canadian pension fund in India,” said one of the people.

The person did not reveal the name of the Canadian pension fund.

It’s not Canada Pension Plan Investment Board (CPPIB), which forged a $200 million venture with real estate developer Shapoorji Pallonji Group last month to invest in commercial real estate in India, said the two people cited earlier. CPPIB took an 80% stake in the venture with Shapoorji Pallonji holding the rest.

The transaction, one of the largest hydro power deals in the country, is likely to be signed by this month end or early next month. The formal closure of the deal, with all regulatory approvals, may take up to three months, the two people said.

The Economic Times reported on 9 September that the Abu Dhabi Water and Electric Authority had emerged as the frontrunner to buy the two power assets from Jaiprakash Power Ventures Ltd, a part of the Jaypee Group, and that TAQA will possibly be the vehicle for the acquisition.

The power plants on the block are the 300 megawatts (MW) Baspa II and 1,000MW Karcham Wangtoo projects located in Himachal Pradesh.

“The Jaypee Group would be selling its 100% stake in two power plants and the proceeds would be used for bringing down the debt. This would be a landmark deal,” said one of the persons cited above.

Originally, the Jaypee Group wanted to sell off all its three projects, including the 400MW Vishnuprayag project, but the plant suffered damage in the cloudburst and subsequent floods that hit Uttarakhand in June.

Consulting firm EY, formerly known as Ernst and Young, is advising the Jaypee Group. A spokeswoman for EY declined to comment for this story. Jaypee Group chairman Manoj Gaur also declined to comment. “We cannot comment on market speculations,” a TAQA spokesman said. A spokesperson for IDFC declined to comment.

In September, the Jaypee Group sold its cement plant in Gujarat to UltraTech Cement Ltd for Rs.3,800 crore as part of the efforts to reduce debt.

On 4 October, a Jaypee Group spokesman told that the group was committed to reducing its Rs.56,000 crore of debt by Rs.15,000 crore by end of the current fiscal year. So far, the group has reduced about Rs.5,300 crore of debt through the sale of the cement plant and from internal accruals.

TAQA, which means energy in Arabic, is no stranger to India. Apart from holding a majority stake in Nagarjuna Construction Co. Ltd’s Himachal Pradesh power plant, the company also operates a 250MW lignite-based power plant in the Neyveli region of Tamil Nadu and wants to scale it up to 500MW.

Rival power producers such as Nagarjuna Construction and Lanco Infratech Ltd are also in advanced talks with potential strategic and financial investors to sell majority stakes in their operational power plants as they seek to reduce debt.

In March, GMR Infrastructure Ltd sold its 70% interest in GMR Energy (Singapore) Pte Ltd to FPM Power Holdings Ltd for $600 million.

Nagarjuna Construction is in the process of reducing its exposure to the power business by selling stakes to one of the units off Singapore’s Sembcorp Industries. The company has already signed a definitive agreement with TAQA to sell its entire stake in Himachal Sorang Power Pvt. Ltd.

Lanco Infratech is in talks with potential strategic and financial investors to sell its stakes in three power projects to pare debt. Lanco Infratech had a net debt of Rs.35,835.4 crore on its books as of 30 September.

In November, G. Venkatesh Babu, managing director of Lanco Infratech, said the company management was also considering options such as inviting strategic investors, disposal of assets, and corporate debt restructuring.

“One can see a lot of action in the power sector as far as mergers and acquisitions are concerned; many PE (private equity) funds and sovereign funds are looking at the Indian power sector with a lot of curiosity as they feel valuations are attractive,” said Sanjay Sethi, executive director and head of infrastructure at Kotak Investment Bank.

In a report released on 18 December, EY said India needs 15,000-20,000MW of fresh capacity addition every year to sustain its economic growth, and to achieve this, $230 billion of investments is needed in the power sector in the next five years.

JPMorgan Asset Management invested $150 million in the Bhaskar Group’s Diligent Power Pvt. Ltd (a 2,520MW power portfolio) in May 2013. Singapore-based Sembcorp is looking to acquire a 100% stake in a 1,320MW coal-fired project in Andhra Pradesh to double its capacity in India, and French energy company GDF Suez SA has signed definitive documents to acquire a 74% stake in a 1,000MW coal-fired power project owned by Meenakshi Energy and Infrastructure Holdings Pvt. Ltd in Andhra Pradesh.

Source

Read More...

Gayatri Projects to reduce stake in NCC Power Projects...

 

Gayatri Projects (GPL), an infrastructure company, proposed dilution of company's stake in NCC Power Projects to below 45%.

Gayatri's wholly owned subsidiary Gayatri Energy Ventures is a major partner in NCC Power Projects, which is building a 1,320 MW Coal fired plant in Nellore district in Andhra Pradesh.

At present preliminary discussions are taking place between NCC Infra and Sembcorp for the investment in NCC power projects, which is subject to a detailed technical, financial, commercial & legal due diligence.

The terms of investment including structuring will be finalized after the due diligence process and negotiations are completely between the parties. As a result of the proposed investment the stake of the Gayatri Energy ventures (WOS of Gayatri Projects) (Q,N,C,F)* may be reduced below 45%.

Shares of the company gained Rs 2.3, or 4.04%, to trade at Rs 59.20. The total volume of shares traded was 44,696 at the BSE (12.10 p.m., Monday).

Source

Read More...

NCC close to selling its thermal power assets to Sembcorp...

 

Infrastructure firm NCC has signed a detailed term sheet to sell its thermal power assets to Singapore global utilities services firm Sembcorp, moving a step closer to a definitive agreement, said two people aware of the development.

The development comes days after France's power GDF Suez agreed to buy a 74% stake in Meenakshi Energy, possibly indicating revival of interest among global investors in Indian infrastructure.

The sources said NCC and Sembcorp agreed on a broad framework to determine premiums to be paid on attainment of milestones.

They expect a definitive agreement and a final deal over the next six to eight weeks. NCC is developing a 1,320MW coal-fired power project at Krishnapatnam in Nellore district of Andhra Pradesh in a joint venture with Gayatri Projects, another Hyderabad-based infrastructure firm. NCC holds 55% stake in the project.

Sembcorp proposes to pay around 500 crore to buy the stake from NCC and invest more in phases. The premium payments will be made over the next few years based on milestones like project completion, fuel linkages and power purchase agreements. NCC will continue as the EPC (engineering, procurement and construction) contractor.

Confirming a detailed term sheet with Sembcorp, KV Rao, CEO of NCC Infrastructure Holdings, the holding company of NCC for BOT road and power assets, told ET that he expects a definitive agreement with Sembcorp by January next year. Sembcorp did not respond to an E&Y mail seeking details on the agreement with NCC.

PwC's energy, utilities and mining leader Kameswara Rao said the structuring of the deals is "understandable and bridges the gap between long-term expectations and the more immediate concerns of project delivery risks".

If it fructifies, the deal will make it the third major investment in India for Sembcorp, which had reported revenues of S$10.2 billion ( 48,000 crore) in fiscal 2012, and its second in India's power sector. Sembcorp bought a 49% stake in a 1,320MW power project being developed by Thermal Powertech of Gayatri Projects for 1,042 crore in 2010. Earlier in November 2009, it had bought 40% stake in a marine offshore venture of Kakinada Seaports.

The deal also helps Sembcorp increase its Indian power portfolio to 2,640MW, at Krishnapatnam in Andhra Pradesh, making it the third largest global investor in the Indian energy sector after Hong Kong's CLP Holdings and United States-based AES Corporation.

Source

Read More...

GDF Suez picks up 74% stake in Meenakshi Group’s 700 MW AP Thermal power plant...

 

The Meenakshi Group has sold its 74 per cent stake in a thermal power project in Andhra Pradesh to energy major GDF Suez of France.

Hyderabad-based Meenakshi Energy and Infrastructure Holdings Pvt Ltd (MEIHPL), which is part of the Meenakshi Group, will retain 26 per cent in the project. MEPL comprises 300 MW of operational capacity and 700 MW under construction at Krishnapatnam port in Nellore district of Andhra Pradesh.

The Meenakshi Group believes that the partnership with GDF SUEZ will be mutually beneficial. The size of GDF SUEZ’s global portfolio will allow MEPL to benefit from a broad multi-disciplinary expertise and to take leverage from GDF SUEZ’s strong global governance. It is expected to provide a stable and solid framework that creates consistency and builds trust for stakeholders.

KPMG India acted as exclusive financial advisors for Meenakshi Group on this transaction.

Source

Read More...

Lanco in talks with CESC to sell Budhil Hydro Power asset...

 

Lanco Infratech is in talks with Kolkata-based CESC to sell the Budhil Hydro Power Project, sources with direct knowledge said. Deal talks are hovering around Rs 750 cr for the 70 MW hyro power project in Himachal Pradesh, negotiations are still on, sources said.

Macquarie is the advisor to Lanco for sale of Budhil Hydro Project. Lanco needs to sell assets and infuse cash into the company to fulfill the terms of CDR (Corporate Debt Restructuring), a source said. A consortium of lenders has given a nod to a Rs 7,700 cr CDR package.

Lanco said, "the information is not true and we do not wish to comment on media speculation." Sanjiv Goenka of CESC was unavailable for comments on the development.

Source

Read More...

Crompton Greaves To Exit Canada Power Plant...

 

Crompton Greaves is planning to make an exit its Canadian power transformer plant, to cut losses in its foreign business.

The transformer factory in Canada contributes about 3% to the company’s total sales but made a loss of $10 Mn in FY13. Earlier this year, it restructured its Belgian plant.

The Canadian facility is running at low utilizations and there are manufacturing design issues too. The company sees continued losses for the facility through the next few quarters, thus deciding to sellout the plant or shut down completely.

The Canada plant was acquired by the Pauwels group of Belgium in 1994, which was later acquired by Crompton Greaves in 2005, thus bringing the plant into its fold.

The underperformance of the international business is affecting the financial results of the company, resulting in a decline in overall profit.

Crompton Greaves earns 55-60 per cent of its revenue from its Indian parent, and the rest from foreign subsidiaries across Europe, the Americas and Indonesia.

Avantha Group’s Crompton Greaves Limited is a pioneering leader in the management and application of electrical energy, with a presence in over 10 countries.

Its diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas.

The company’s business is divided into three primary segments: The power business contributes the most (63%) to revenue, followed by consumer products (20%) and industrial systems (13%).

Source

Read More...

IDFC Alternatives planning to buy the wind power assets of Orient Green Power...

 

IDFC Alternatives is discussing a large stake buy, possibly a controlling interest, in select wind power assets owned by Orient Green Power Company, a listed firm of the southern conglomerate Shriram Group.

The transaction could be valued up to Rs 300 crore, said banking sources directly familiar with the matter. The deal may involve IDFC buying into fully owned subsidiaries of Orient Green Power, and not into the listed parent.

Private equity arm of IDFC, managing assets worth $2.2 billion, has a significant presence in the wind power sector. The deal could be part of the consolidation play in India's renewable energy space.

IDFC owns privately held Green Infra, which operates 377MW wind power assets, mostly built through acquisitions. In August this year, it acquired TVS Energy, a renewable energy arm of TVS Motor, expanding its foot print in Tamil Nadu and Maharashtra.

Orient Green Power has existing 406MW wind power and 60.5MW biomass plants and wants to aggressively expand the portfolio to 1,000MW in the coming years. The company, however, is in the midst of a financial rejig, lining up some divestures in subsidiaries and turning to extra commercial burrowing (ECBs) to lessen the interest burden.

"Talks are on with several people. Nothing has fructified as yet. I cannot comment on the nature of discussions or the parties with whom we are talking," T Shivaraman, executive vice chairman of Orient Green Power, said. The company's share price closed 1.7% up at Rs 11 in Mumbai on Tuesday.

Investment bank MAPE is said to be advising on the deal, which is not yet definite, sources added. An external spokesperson for IDFC did not respond a query immediately.

Though India is the fifth largest renewable energy market by installed capacity, it has seen smaller standalone players struggling to stay afloat in a capital-intensive sector where the tariffs are tightly controlled by governments.

Source

Read More...

CIL eyes mine acquisitions in Indonesia...

 

Pursuing its overseas expansion strategy, Coal India Ltd (CIL) is actively looking at as many as five proposals for acquisition of mines in Indonesia.

CIL’s overseas plans come at a time when the company is facing flak for acute shortages of coal, which is hurting country’s key sectors including power and fertiliser.

“Coal India is examining four to five proposals and they all are in Indonesia,” according to Coal Ministry sources. The sources, however, refused to give a timeline as to when they are likely to be finalised.

Coal India in September had said that it invited an expression of interest inviting global companies to offer overseas assets.

“In pursuant to the Government of India’s guidelines to acquire raw material assets abroad, a notice inviting proposal offering overseas coal assets to CIL was floated... A number of proposals has been received and are being evaluated,” the company had said.

Coal Minister Sriprakash Jaiswal earlier said that acquisition of coal mines overseas should be done in an aggressive manner to meet the country’s energy requirements.

In order to tide over the fossil fuel shortages, the government is also proposing to import coal.

Meanwhile, CIL has already finalised bids for further drilling its twin mines in Mozambique. Two coal blocks - A1 and A2 - at Motaize, in Tete Province of Mozambique, are spread over 200 sq km.

CIL has proposed a capital outlay of Rs 25,400 crore in the 12th Five Year Plan, plus an ad-hoc provision of Rs 35,000 crore to acquire coal assets abroad and develop the acquired coal blocks in Mozambique, according to the coal PSU.

The capital expenditure for current fiscal has been envisaged at Rs 5,000 crore, along with additional ad-hoc provision of Rs 4,000 crore to acquire coal assets abroad and develop coal blocks in Mozambique, it said.

The demand-supply gap of coal was 135 million tonne (MT) last fiscal and may widen to 185.5 million tonnes in 2016-17.

Source

Read More...

Chinese firm Dongfang in talks to buy Trichy-based power firm...

 

Chinese firm Dongfang is in talks to take over Trichy-based power equipment manufacturer Cethar. The acquisition will help the Chinese company have presence in India. It will also help Dongfang control its costs as well as comply with the localisation norms in India.

Cethar, formerly known as Cethar Vessels, manufactures both sub-critical and super-critical boilers, used in power plants. It also designs and constructs thermal power plants up to a capacity of 800 megawatts. In 2010-11, it clocked sales worth Rs 2,430 crore. "The valuation of this company comes to around Rs 500-600 crore. They are currently in talks and the acquisition would help Dongfang have an entry into Indian manufacturing," said a person directly involved with the deal. Neither Cethar nor Dongfang responded to an email questionnaire.

Cethar was founded by K Subburaj, who started it in Trichy as a sub-contractor to Bharat Heavy Electicals (BHEL). Subburaj had worked for the Indian Space Research Organisation (ISRO) prior to starting the venture. The company expanded into power manufacturing and then into a construction company for power plants.

Analysts say Indian facilities can help foreign companies as they have been asked to set up service centres in India to help power plants under construction using the equipment. "This move will help because power companies will definitely prefer firms that have domestic presence," said Piyush Nimgaonkar, manager at CARE Research.

Dongfang, along with Shanghai Electric and Harbin, has already garnered a major market share amongst private power generators. About 24,437 megawatts power capacity is installed in India; plus, 40,000 megawatts of power capacity, based on Chinese equipment, is under construction. This has created a huge furore amongst Indian manufactures such as state-owned Bharat Heavy Electricals (BHEL) and private engineering company Larsen & Toubro.

After multiple representation by industry bodies as well companies, the government has made it mandatory for Chinese companies to have service centres in India. In transmission and distribution sector, state-owned companies are preferring companies having domestic manufacturing facilities. A bulk tender for the country's largest power generator, NTPC, had barred foreign companies which did not have an Indian joint venture partner.

Source

Read More...

JSW Energy, Tatas eye GMR's 600 MW Emco plant in Maharashtra...

 

Power utilities such as JSW Energy and Tata Power are known to be evaluating GMR’s Emco power plant in Maharashtra for a possible buyout.

In 2009, GMR had bought the 600-Mw power plant from Emco, while the plant was being constructed. Now, the plant is operational and GMR is known to be expecting a premium on the purchase.

Responding to questionnaires on the development, GMR said it didn’t comment on speculation. “We maintain we are evaluating various options to create shareholder value,” Tata Power said in a response.

Earlier, JSW Energy had been talking about purchasing power projects and had actively looked at the assets of Lanco Infratech. “As a policy, we don’t comment on market speculations and rumours,” JSW Energy said in response to the questionnaire.

Some of the interested parties insist they won’t pay a heavy premium for the project. “It is a good asset and has coal supply tied up, but some of the power under power purchase agreements (PPA) don’t have a very attractive rate. So, if a premium is paid, there isn’t much money to be made,” said one of the bidders evaluating the project.

Apart from Indian players, international utilities such as Malaysian giant Genting and Singapore’s Sembcorp, which already have interests in India, are known to be eyeing the project.

“The sale of power projects have started progressing now,” said an analyst.

The Emco power project has already signed fuel supply agreements with South Eastern Coalfields, a subsidiary of Coal India. It also has all its power tied up in long-term agreements. The project is selling 200 Mw of power to Maharashtra State Electricity Distribution Company at Rs 2.9 a unit. However, power purchase agreements for the remaining power have a much higher rate. It has a 15-year agreement to sell 200 Mw to Dadra Nagar Haveli at Rs 4.6 a unit, as well as a seven-year agreement with Tamil Nadu Electricity Board to sell power at Rs 4.9 a unit.

While the first unit of the project went on stream in March this year, the second went on stream in August. Emco Energy is the GMR group’s first coal-based power plant to commence commercial generation. It has as much as 2,136 Mw of operational capacity. The company is also setting up additional capacity of 5,038 Mw.

Source

Read More...

GMR puts Emco Energy, having 600 MW Plant, up for sale to reduce debt...

 

Infrastructure conglomerate GMR has decided to sell Emco Energy Ltd, which has a 600 mw power plant in Maharashtra, part of an exercise to reduce debt.

GMR has mandated global investment bank JPMorgan to help sell the recently commissioned unit, several people with direct involvement in the discussions said. They add that early talks have been held with several global and local utility companies as well as infrastructure buyout funds.

GMR Energy — the energy subsidiary of the listed GMR Infrastructure — owns 100% in the project. The highly indebted Hyderabad based group has been selling assets, including road projects in India and power and mining ventures abroad, in order to cut debt.

Emco is a 600 mw coal fired project located in the Chandrapur district of Maharashtra. In August this year, the 2x300 mw plant was commissioned and synchronised with the grid becoming GMR's first thermal project to commence commercial generation. What makes Emco attractive to potential suitors is the fact that it has signed fuel supply agreements (FSAs) for the entire 600 mw, primarily from Coal India and from imports. Further, it has long-term power purchase agreements already in place for 400 mw with Maharashtra and Dadra & Nagar Haveli and is in advanced negotiations with the Tamil Nadu SEB for off-take of another 150 mw.

According to company officials, the total project cost is Rs 3,948 crore ($658 million), out of which Rs 880 crore is equity while the rest has been funded by debt from Indian lenders like Axis BankBSE -0.36 %. Sources said GMR is expecting an enterprise valuation of 1.5 to 2 times the equity book value of the project, translating to Rs 4,388 crore to Rs 4,828 crore. At the end of Q2 FY14, Emco's top line was Rs 1,730 crore. A GMR spokesperson responded to by saying as a matter of policy, the company would not comment on speculation.

"There will be enough takers for Emco since it is an operational asset with signed FSAs and PPAs. Investors are looking for commissioned assets where the risks are all boxed in. Even infrastructure PE funds would be willing to pay a premium for such assets which are few and far between," said Vibhor Singhal, infrastructure analyst at PhilipCapital.

Source

Read More...

Tata Power eyes more acquisitions in wind and solar push...

 

Tata Power is looking for more acquisitions as part of a $260-million-a-year investment push into renewable energy, following last month's purchase of a wind farm in western Gujarat from AES Corp, a senior official said.

Part of the tea-to-telecoms Tata group, the firm is India's third-largest listed utility by revenue in the Thomson Reuters India Index.

Primarily a thermal power utility, it is targeting rapid expansion in renewables at home and overseas, aiming to add about 150 to 200 megawatts (MW) of wind capacity and 30 to 50 MW of solar power every year.

Its newly acquired plant has a capacity of 39.2 MW.

"After we announced the Gujarat acquisition, we have got a lot of interest from other owners of solar and wind operating assets who want to exit their investment," said Rahul Shah, the chief of business development for India business and renewables.

"So are we are evaluating a lot of these opportunities," he told Reuters in a telephone interview.

As coal and gas shortages and populist tariff regimes hobble the performance of thermal power stations, renewable energy players such as Tata and Welspun Energy want to tap the sector's potential in a growing but energy-starved economy.

But problems with acquiring land for projects, poorly enforced government policies, and a race to the bottom in bidding for solar projects are a drag on renewables growth, said Shah.

The margins on renewable energy are lower, at around 12 per cent to 18 per cent versus about 20 per cent to 30 per cent in the thermal sector, Shah said. "But in renewable energy it is a more predictable performance and a predictable return," he said.

Although the firm will look to sell a stake in its renewable business at some point, it has no timeline for this, Shah said.

The move could take the form of an initial public offering - although current market conditions are unfavourable - or a sale to a private investor, he added.

Tata operates about 400 MW of wind projects and 30 MW of solar. Shah said he hoped to buy more projects as soon as this fiscal year, which ends in March, and is evaluating projects worth a total of 370 MW for possible purchase.

India has targeted doubling its renewable energy capacity to 55,000 MW by 2017, from nearly 27,000 at the start of this year. Renewables contribute about 12.5 per cent of India's energy, the 2012/13 report by the New and Renewable Energy Ministry shows.

Hurdles remain for the likes of Tata, Shah said. For example, rules stipulating that India's 28 states must source a certain part of their energy from renewables have not been properly enforced. Electricity tariffs paid by states can also be too low for companies to make money.

Other investors have echoed Tata's concerns. Welspun Energy, which is eyeing $1.6 billion of new investments by 2017, told Reuters in October that land acquisition and poor transmission networks remained problematic.

JinkoSolar Holding, a China-based solar panel maker, told Reuters that low prices for solar products, cut-throat competition and high interest rates dragged on growth.

Shares of Tata Power were down 0.9 per cent by 3:29 p.m., versus a fall of 1 per cent in the Nifty.

Source: Routers

Read More...

PFC Consulting Ltd Transfers wholly owned subsidiary to Techno Electric and Engineering Company Ltd....

 

PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited) has transferred on November 13, 2013, its wholly owned subsidiary namely "Patran Transmission Company Limited", incorporated for development of Independent Transmission System for Patran 400 kV S/S to "Techno Electric and Engineering Company Limited", successful bidder selected through "Tariff based Competitive Bidding Guidelines for Transmission services" issued by Ministry of Power, Government of India.

Shares of Power Finance Corporation Ltd was last trading in BSE at Rs.148.80, up by Rs.4.40 or 3.05%. The stock hit an intraday high of Rs.150 and low of Rs.145.10.

The total traded quantity was 2.58 lakhs as compared to 2 week average of 2.98 lakhs.

Shares of Techno Electric and Engineering Company Limited was last trading in BSE at Rs.85.55, up by Rs.0.85 or 1%. The stock hit an intraday high of Rs.86.40 and low of Rs.83.05.

The total traded quantity was 818 as compared to 2 week average of 0.11 lakhs.

Source

Read More...

US-based EnerSys acquires remaining 49.5% stake in Energy Leader Batteries...

 

EnerSys, an international player in stored energy solutions for industrial applications, has acquired the remaining shares in the Indian joint venture company Energy Leader Batteries India Pvt Ltd for an undisclosed amount, the company said in a release.

Energy Leader Batteries is a manufacturer of a range of industrial batteries serving both reserve power and motive power customers in India. Incorporated in 2007, Hyderabad-based Energy Leader Batteries India manufactures valve-regulated-lead acid batteries for industrial applications. It markets its products under the brand name 'Energy Leader'.

Last March, EnerSys had acquired 50.5 per cent stake in the firm. The minority partner in Energy Leader Batteries India had the option to require the redemption of the shares owned by them, which if exercised, would have make EnerSys the sole owner of these entities.

"This transaction, in addition to our recently completed transactions, meaningfully expands the addressable markets for our products in South Asia," said John D. Craig, chairman, president and chief executive officer of EnerSys.

"The continued rapid growth of the Indian markets provides exciting opportunities for EnerSys. Our joint venture provided a solid platform to establish our business in India, and the completion of the acquisition of the remaining ownership interest provides us the opportunity to accelerate our regional growth strategy," said Mark Tough, president of EnerSys Asia.

Akasam Consulting Pvt Ltd acted as the sole advisor for Energy Leader Batteries.

EnerSys manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.

Source

Read More...

Alpha Technologies acquires cleantech solutions firm NavSemi Energy...

 

US-based Alpha Technologies has acquired Bangalore-based NavSemi Energy for an undisclosed amount, the company said in a release.

Founded in 2008, NavSemi designs and manufactures products that extract efficacy from PV/solar systems by maximising the energy harvesting capabilities of individual solar panels.

NavSemi’s current product range focuses on standalone market with solar charge controllers for home and street lighting, solar BTS systems, standalone battery based residential and commercial systems and micro grid solutions. Based in Bangalore, the firm has additional offices in Singapore and the US.

Alpha Technologies is engaged in designing and manufacturing of power systems for renewable and other energy applications, backup power, and industrial applications. It provides cable-TV broadband network powering product, UPS solutions, DC power systems and hybrid systems.

The original article is posted here.

Read More...

Ramky Acquires Sembcorp's Stake In Indian JV...

 

Sembcorp Environment, subsidiary of Sembcorp Industries, is divesting its entire stake of 51% in Sembcorp Enviro (India) to partner Ramky International (Singapore) for $7.25 Mn, Straitstimes states. The move is line to streamline its businesses and sharpen its strategy for the Indian market.

Sembcorp Enviro (India) is a special purpose vehicle that owns a 51 per cent stake in SembRamky Environmental Management, a medical waste collection and treatment player in India.

The Singapore major SembCorp Industries had acquired a 51% stake in Medicare Incin Pvt Ltd, a wholly-owned subsidiary of the Ramky Group, Hyderabad, to enter the medical waste disposal business in India.

The JV company was called SembEnviroRamky, which suited Sembcorp’s expansion strategy in India as well as helping in internationalising its business at that time.

Ramky Enviro Engineers Ltd acquired the commercial cleaning, conservancy services, and car park management units from Sembcorp Environment Pte. Ltd in Singapore through its fully-owned subsidiary Ramky Cleantech Services Pte Ltd., in 2009.

Ramky is headquartered in Hyderabad with regional offices located at Delhi, Mumbai, Ahmedabad, Bangalore, Chennai, Bhopal and Kolkatta and over 50 project offices. It provides services in the areas of civil, environmental and waste management infrastructure.

Sembcorp is a provider of essential energy and water solutions to customers in Singapore, China, Vietnam, the United Kingdom, the UAE and Oman. The Group has total assets of over S$13 billion and employs over 9,000 employees.

Sembcorp Environment also has stakes in Singapore based SembWaste (100%), Sembcorp Tay Paper Recycling (60%) and Australia based SembSITA Australia (40%).

Recently , A unit of Sembcorp Industries, backed by investor Temasek, was planning to acquire a majority stake in NCC Power Project for R1500 Cr; In November 2009, Sembcorp through its wholly owned subsidiary Sembawang Shipyard had formed a JV with Kakinada Seaports Ltd to establish and operate a marine and offshore facility.; In 2006, the firm had sold Sembawang Engineers and Constructors Pte Ltd to Punj Lloyd Pte Ltd, an arm of Indian infrastructure firm Punj Lloyd in two tranches for a total of $25.33 million.

Source

Read More...

Pan Global Corp to buy 5.7 MW hydro plant in Uttarakhand for $6.6M...

 

Pan Global Corp, a firm listed on the OTC exchange in the US, has entered into a stock purchase agreement with Regency Yamuna Energy Ltd (RYEL) to buy the outstanding shares and convertible debt of RYEL which is commissioning a 5.7 MW small-hydro project in northern India.

The acquisition, to be completed in multiple tranches, will involve a total investment of around Rs 41 crore ($6.6 million).

As part of the deal, Pan Asia Infratech, an arm of Pan Global Corp, has entered into an agreement with RYEL, Arun Sharma, a director and majority stockholder of RYEL and the remaining stockholders of RYEL on October 28, 2013 to buy their shares.

This acquisition aims to fund the completion of RYEL's hydro project in Badyar in Uttarakhand, having a valuation of Rs 67.11 crore.

It will also enable RYEL to restructure its outstanding secured bank credit facility worth Rs 28.36 crore with the State Bank of Patiala.

In the first round of closing of the transaction scheduled by this weekend, Pan Global will buy 2,758,621 shares for Rs 4 crore (approximately $655,738), constituting approximately 13.4 per cent of RYEL.

In the second closing, expected within two weeks after the project starts generating power, Pan Asia will purchase 8,127,094 shares from the existing shareholders representing a 38 per cent stake of the firm for Rs 11.8 crore.

Within four months of the second close it would purchase the balance shares and pick certain liabilities of RYEL and the promoters of the firm for Rs 24.75 crore.

Pan Asia has also purchased a debenture from RYEL for Rs 42 lakh (approximately $68,852), bearing interest at the rate of 15 per cent per year, maturing on October 18, 2014 and convertible into shares of RYEL at the rate of Rs 14.50 per share. This would take total investment to around Rs 41 crore.

Ninety-five per cent of RYEL’s small hydro power project is estimated to be completed and commercial operation is expected to start during the current quarter.

Small hydro power generation facilities are a fast-growing component of India’s electricity generation sector. These projects typically comprise hydropower plants less than 25 MW and are different from traditional large-scale hydropower because they have a significantly reduced environmental impact. Small- and mini-hydro facilities are typically ‘run-of-the-river’ power plants, which do not dam the water channel, thereby retaining a light environmental footprint on the channel hydrology and the surrounding terrain.

Pan Global, which was till recently a shell company incorporated in the US, is focused on developing and supporting renewable energy projects besides other cleantech ventures. The firm is backed by investment firm Brookstone Partners, as per a SEC disclosure.

Early this month it also entered into a 10-year lease agreement for a five-acre parcel of land in Punjab for establishing hydroponic greenhouse growing operation. Hydroponic systems can use as much as 90 per cent less water than conventional methods while increasing crop yields on a more regular production schedule.

Pan Global is led by Bharat Vasandani, who began his career at an Indian plastic manufacturing company Jyotika Industries. He later joined D’Essence Consulting based in Mumbai where he was part of a team that assisted private and public companies on business strategy and turnarounds. He later moved on to a similar role with TresVista Financial Services in Mumbai.

Source

Read More...

DoD appoints five merchant bankers for Rs. 7,700 Crore Stake sale program of Power grid...

 

For the proposed stake sale of Power Grid Corporation of India, the Department of Disinvestment (DoD) appointed five merchant bankers – Citigroup Global Markets, ICICI Securities, Kotak Investment Banking, SBI Capital Markets and UBS Securities.

The merchant bankers will aide the government in Rs. 7,700 Crore stake sale program.

According to sources, nine bankers, including Axis Capital, Barclays Capital, HSBC Securities and IDBI Capital, had shown interest early last week and submitted their bids for the proposal.

The Government intends to dilute 4% (18.51 crore shares) of its existing equity paid-up capital and, in addition, issue fresh shares representing 13% of the pre-issue equity (60.18 crore shares) in the state-owned electric utilities company, which could help the government fetch R7,725 crore at the current market price.

 

---

More literature on this...

http://www.financialexpress.com/news/power-grid-stake-sale-dod-names-5-bankers/1176458

---

Read More...