Failing IL&FS puts wind unit up for sale

INDIA: The wind energy unit of Infrastructure Leasing and Financial Services (IL&FS), once considered among the largest wind power generators in the country, is up for sale as a result of the insolvency of the parent company.

IL&FS has a wind portfolio of approximately 775MW in India

IL&FS, the largest non-banking financial institution in India declared bankruptcy amidst failed loans and non-performing assets and a debt pile of INR 920 billion ($12.4 billion).

The government recently took over the company and appointed new board of directors to oversee turnaround and restore market confidence.

A new company board appointed HSBC bank to look for buyers for the wind power business which is expected to be valued at INR 45 billion for a total wind asset capacity of 775MW, most of which was built between 2011 and 2017 by Wind World India – itself also recently filing for insolvency.

The decision to sell this unit comes after a plan to merge it with local developer Orient Green Power (OGCP) failed.

Mergers & Acquisitions

The announcement comes as rival developer Greenko nears the acquisition of Orange Renewables.

Media reports in India also suggest Greenko might be lining up a move for Skeiron Renewables, a wind power development subsidiary of turbine manufacturer Suzlon.